The Limits of AI in Deal Sourcing

One thing up front: We love AI and we use AI to support it. With all due love, we don’t want to badmouth AI…., but unfortunately, AI has its limitations. We firmly believe that in our business, business is done between people talking to each other in person.

Let´s have a look at AI lacks in the context of approaching decision maker or owner in the target scouting process.

  1. Lack of emotional intelligence:

AI lacks emotional intelligence and empathy, which are critical in sensitive acquisition negotiations. CEOs may have personal attachments to their companies, and AI’s inability to read emotional cues can lead to misunderstandings and failed attempts.

  1. Lack of contextual understanding:

AI struggles to grasp the unique nuances of each situation, missing critical details about a company’s history, culture, and market dynamics. This can lead to generic suggestions that do not resonate with the CEO or Shareholder.

  1. Inability to read nonverbal cues:

AI cannot interpret non-verbal cues such as body language and facial expressions, which are essential to understanding the CEO’s thoughts and feelings during negotiations.

  1. Limited Adaptability:

AI’s decision-making is based on pre-existing algorithms and historical data, making it inflexible in rapidly changing business environments and potentially leading to missed opportunities.

  1. Privacy and security concerns:

Using AI involves sharing sensitive information about the acquiring company, raising privacy and security concerns that must be addressed with robust cybersecurity measures.

  1. Impersonal approach:

An AI-driven approach can appear impersonal and detached, potentially hindering the relationship building with the CEO or Shareholder that is critical to a successful acquisition.


While AI offers significant benefits in business, relying solely on AI for target acquisition approaches has limitations. Its lack of emotional intelligence, contextual understanding, and adaptability can hinder effective communication and relationship building. A balanced approach that combines AI with human interaction and empathy is essential for successful acquisition negotiations.

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