As generative AI (GenAI) becomes a ubiquitous force across industries, its impact on high-stakes domains like M&A is both promising and problematic. At smartmerger.com, our journey integrating GenAI into the M&A lifecycle has revealed a powerful insight: while these tools dramatically accelerate workflows and unlock new efficiencies, they also introduce critical risks when relied upon uncritically. The central flaw? GenAI always offers an answer — even when that answer is wrong.
This article explores the underlying mechanics of GenAI, the structural causes of hallucinations, and the specific challenges this creates for M&A professionals. We share practical lessons learned, our approach to responsible AI implementation, and a forward-looking perspective on how to harness GenAI’s potential without compromising the accuracy and integrity M&A demands.