Private equity firms adopt generative AI for M&A and due diligence

Private equity firms are increasingly integrating generative AI into their deal lifecycles to manage document-heavy tasks such as market mapping, sourcing, and portfolio monitoring. The technology is being utilized to read, extract, and cross-check data from contracts, financials, and information memorandums to surface risks more efficiently.

Industry data indicates significant adoption. A Deloitte survey of 1,000 corporate and private equity leaders found that 86% have integrated generative AI into their M&A workflows, with 65% doing so within the last year. Furthermore, 88% of firms using these tools in M&A have invested $1 million or more. Bain’s 2026 M&A report notes that AI tool adoption more than doubled in 2025.

Experts emphasize that AI serves as a tool for machine coverage rather than a replacement for human judgment. Effective implementation requires strict data boundaries, the removal of personal data from working folders, and a structured review process where humans interpret the findings generated by the AI.