AI reveals governance and integration failures in M&A deals
By
Murali Thiagarajan
Summary
This article examines how AI is exposing deep integration failures in mergers and acquisitions (M&A). Rather than solving post-merger problems, AI tools reveal fragmented systems, inconsistent data, weak governance, and misaligned access controls that undermine deal value. The piece cites McKinsey's 2025 survey showing nearly 90% of companies use AI in at least one business function, and Bain's 2026 M&A report on AI adoption in M&A. The core argument is that AI acts as a diagnostic tool that makes visible the governance and operational gaps that have always existed in poorly planned integrations, forcing companies to address foundational issues rather than relying on technology as a quick fix.
Source
Key quotes
· 3 pulledAI doesn't make integration intelligent by design. It just makes the gaps harder to ignore.
Fragmented systems, inconsistent data, weak governance and misaligned access controls: none of that disappears after the deal closes. It sits there, undermining value.
McKinsey's 2025 State of AI survey found that nearly nine in ten companies now use AI in at least one business function.
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