Survey: Majority of Global Dealmakers Call for Government Regulation of AI due to Data Security and Privacy Concerns
According to a survey conducted by Datasite, a leading technology provider for global mergers and acquisitions (M&A) professionals, 73% of 500 global dealmakers believe that governments should regulate artificial intelligence (AI) technology. The survey aimed to gauge industry sentiment and concerns surrounding the risks associated with AI, particularly generative AI (GenAI).
The survey revealed that while 90% of dealmakers claimed to have moderate to extensive familiarity with AI, more than 60% stated that the adoption of GenAI within their own organizations was low or experimental. This suggests that personal familiarity with AI has yet to translate into widespread integration in their work. The primary reasons for this hesitance were cited as data privacy and security concerns, with 34% of dealmakers identifying them as the greatest risk. Other concerns included job displacement (25%), quality control (20%), and issues related to intellectual property rights, bias, and fairness (9%).
Rusty Wiley, CEO of Datasite, acknowledged that AI is already reshaping various phases of the dealmaking process, from automating manual tasks to powering data analysis. However, he emphasized the importance of addressing the challenges associated with GenAI and establishing systems, processes, and regulatory frameworks to effectively harness its benefits while mitigating risks.
The survey indicated that dealmakers see the biggest benefit of using GenAI in their business as increased productivity (42%). However, 36% identified data security and privacy concerns as the biggest obstacle to incorporating GenAI. Lack of competence and expertise (26%), GenAI’s immaturity or need for more validation (20%), and unclear application use cases (12%) were also mentioned as barriers.
In terms of deal management, dealmakers believe that GenAI will have the most impact on streamlining processes rather than driving outcomes. The survey found that 52% of dealmakers anticipated GenAI would increase their daily workload, and 51% expressed concerns about its impact on employment.
Despite recognizing the opportunities presented by AI, the integration of GenAI into daily dealmaking processes may face initial challenges such as AI anxiety. Wiley emphasized the importance of ensuring business models are primed to leverage AI effectively, increase efficiency, apply sharper insights, and ultimately improve deal outcomes.
To assist dealmakers in capitalizing on AI-driven opportunities, Datasite introduced Datasite Intelligence, an AI-powered search engine that enhances the speed and accuracy of deal research. The application utilizes natural language processing and advanced AI technologies to provide relevant deal precedents and buyer recommendations in minutes.
The survey conducted by Datasite provides insights into the perspectives of dealmakers worldwide regarding the impact of AI and innovation in the M&A sector. The findings highlight the need for government regulation and the importance of addressing data security and privacy concerns when integrating AI into business operations.
In conclusion, while the majority of dealmakers recognize the benefits of AI, concerns related to data security and privacy hinder its widespread adoption. Government regulation and the establishment of robust frameworks are necessary steps to effectively harness AI’s potential in the dealmaking process.
