The data and the deal

Data - how it’s stored, presented, analysed, accessed - is at the cornerstone in mergers and acquisitions. Good data is essential in getting a good deal away. But how is accelerating technology changing the ways in which dealmakers use data? What impact is it having on speed and costs? How accurate is it ? And - as data usage gets better - how important is the human element in transactions?

Jeroen Kruithof, chief executive, Virtual Vaults

Although data rooms will go fully AI, really that’s not the main focus. The bigger issue is that deal processes are still slowed down because lawyers, financiers and corporate finance advisers are still not on the same page at the same moment. They work in silos, even when using the same platforms, which means they effectively work in the dark.

The challenge is to create a single source of truth in a data room that they can all access, equally and in real time. When you have that central repository and all the IRLs brought together, you only need to answer a question once, and everyone else gets that same answer.

That level of access not only allows dealmakers to see what is happening right now but gives them greater awareness of what’s coming up, where they’re heading, and makes them more aligned.

Junaid Haroon, partner, Mills & Reeve

Technology is something we’re having to deal with at quite a rapid pace because it is developing so fast. Three years ago we viewed this tech as being like an enthusiastic but raw trainee solicitor. We’ve upgraded that to ‘enthusiastic junior lawyer’ because it has become more sophisticated, more accurate — but it’s still not quite there, and much of its output is still hit and miss.

You hear all these stories about AI replacing junior lawyers and erasing junior fee earners. I don't believe it will: AI saves time, but we still have to go through and check its work, because it’s nowhere near perfect.

One of the biggest drawbacks is clients using AI to beat us down on price. Some use it to draw up documents and agreements, and then still want us to do something, but not at our normal rate because they now think the process is so simple. That will continue until someone in the US tries to sue Microsoft over some advice Copilot has put out: then they’ll realise that drawing up a watertight agreement isn't something you can just do with a bit of off-the-shelf free AI.

Alper Dervish, partner, Azets

It is an enhancer in handling day-to-day workflow: good at time saving, handling basic processes, and getting quick answers. If I’m about to meet a business with an hour’s notice and I want to learn about their market, it's great at producing a briefing.

Of course, more junior members of staff are more adept at using it, not because they’re lazy but simply because they’re more adept - they can not only use it to speed up tasks, but use it to teach themselves topics, creating reports containing concepts I wasn't aware of, and then using the tech again to explain these ideas in simpler form.

However, what AI tools can’t do is read emotion, which is the most essential element in the dealmaking process: picking up on what the seller wants, what the buyer thinks, and building rapport.

Kyri Papantoniou, partner, Gunnercooke

Currently the outlay in investing in AI tech is mind-blowing, and incredibly expensive. Over time costs will come down as the technology matures and we become more familiar with it, but right now it’s significant. That means investment is currently dominated by the bigger firms — smaller firms couldn't even consider getting that budget for my firm’s spending on AI.

However, those big investments will become worthwhile, not just in AI but other technologies. For example, consider how different data rooms looked 20 years ago, as fairly basic document repositories. Now they are so much more than data: the functionality is just incredible. They’ve become effective communication tools, getting all parties aligned early in the deal process. More than that, they give early indications of issues: for example, “heat maps” highlight areas of activity and show what buyers are focusing on. If a buyer is accessing a particular document or folder, we know they’re interested in an issue there, and there might be a concern. So we can pre-empt further inquiries, identify focal points, and potentially highlight risk areas.

Nick Wall, director, Clairfield

One of the great benefits of modern data rooms is that they create a uniform set of documents that we can all access in real time. Gone are the days of email chains flying around with different versions of IRLs. Its real value lies in consistency: it ensures outputs across different teams are aligned, which is critical in multidisciplinary deals.

Historically, different colleagues would report in different formats and at different levels of detail, chipping in as they saw fit. Systemising processes reduces cost, creates consistency, and increases quality.

What I distrust about AI is that it devalues insight and emotion. It has its place: it’s great at processing information, handling requests, doing analysis and getting answers. But I don't want it telling me whether I should trust someone. I don't want AI telling me that this buyer is trustworthy.

Chasz Coulsting, director, Jerroms Corporate Finance

Without doubt data rooms and AI remove the frustration sellers get from being asked the same questions five or six times by the buyer, then the commercial due diligence team, then the financial diligence team, then the legal team. They need only answer it once and it’s then sitting in the data room for everyone.

My main concern with AI and automation is its impact on skills, particularly at the junior end. For example, when we do due diligence, we've got these workbooks which are already automated to a degree. The tech means we can dump in data and get to the end product and results much quicker. That's fine, but it removes the experience that comes to a junior going through that data, maybe sorting anomalies out of that data, and understanding how it all goes together. That means when you ask questions, they perhaps don't know or really understand the answer, and perhaps can’t give the best advice.

Everyone needs to cut their teeth at some point — but are we taking away the skills of future generations by having too much automation?

Andy Kay, partner, Crowe UK

At the moment AI is a glorified admin assistant — a total game-changer when it comes to managing emails and generating really good letters. And it’s moving so fast. We have to embrace it, not to replace what we do, but to add and to complement our services.

The danger is just sitting back and letting the systems do their own thing. We are still responsible for the output: we have to go through everything, run an eye, even two eyes, over it, to make sure everything is right.

And that applies to clients. It’s too easy for them to say “I’ve drafted this letter using AI, can you just approve it?” They may think that approach saves time and money, but of course it’s a false economy by the time we’ve had to go through and correct things.

Andrew Lawton Smith, partner, Fieldfisher

Tech is a tsunami coming, and we have to get in front of this wave. It’s like when PCs and mobile phones first came along - you couldn't actually do much with them in those early days, but we had a very clear sense, even then, that something big was on its way. I saw endless opportunities, such as not having to be stapled to a desk.

At the moment the real advantage is cost reduction: it can break the back of some heavy lifting, but the next phase will be the qualitative element developing enormously.

One of the challenges professional advisers face is how we maintain profitability, margins and pricing for our services as we invest in this technology. We are spending decent amounts of money on these innovations, so we must get a decent return.

Clients need to pay us for how we did something, not how long it took. We must not be penalised for being more efficient. And it can be done: we've used automated drafting for more than ten years, and that’s allowed us to do more fixed-price work, rather than charging by the hour. If a client wants a watertight share agreement it is going to cost them x because of the level of advice, not because of time spent drafting it.

Richard Dwight, partner, KPMG

If you want to cut corners, AI will do it. It will generate a due diligence report, but unless you can talk through that report with a professional who understands the content and implications, the report is meaningless. It's that understanding which will continue to be our value add.

AI can never replace the human element. Deals are grey, rarely black and white, and so much of our work involves judgment, nuance and reading the people in the room. Investors want to know: “Can I trust the chief exec? What’s the FD like?” You can’t get those answers from a Q&A database. Having trust in people is still fundamental to any deal.

Kristine Boin, CCO, Virtual Vaults

There’s a lot of discussion about the potential of AI, but is it really addressing what dealmakers want, which is to close the deal as quickly as possible?

When we speak to dealmakers, what they really want is communication with the target, and having all the correct information they need as quickly, efficiently and presentably as possible, so that they are aligned. When you have a central repository and all the IRLs together, you only need to answer a question once, and everyone else gets that same answer.

Without a good data room, the same question can get a different answer each time.

Richard Underwood, managing partner, Legal Clarity

AI is almost accurate: but for what we do, almost is not good enough. Would you be prepared to put your name to a report relying solely on AI, even if it can be done for a tenth of the cost?

An entrepreneur may accept a 90 per cent success rate on an internal document by using AI and saving time and money. But there’s no way anyone here would take a punt on the accuracy of a 300-page report written by AI that’s being put before a bank or private equity, because they’re not taking any risk.

What is interesting is what will happen to the middle tier of dealmakers. We will always need senior experienced people to lead deals, but so much more of the lower-level work can now be handled by juniors who are adept with this technology. What happens to that middle tier in the future is a real question.

Why do we have to charge out by the hour? We’re not paid by the amount of work we put in, but rather for the experience we bring to bear. If we invest in this technology we will shorten the number of hours we put in, but we will still bring experience to bear. If we put the investment into the system, we need to charge accordingly.

Tom Parry, partner, BK Plus

We rely on it as a project management tool, rather than integrating AI. Nor do we use Q&A functions very much on data rooms. Part of the reason for avoiding Q&A is that we ask whether we are asking the question in the right way. I always find it's much easier to have a conversation with someone, even though it doesn't get recorded.

When it comes to using an online Q&A session versus a chat — I've always gone for a call, because it’s far better to get all the parties on the phone and hash it out.

Interviews with the participants

That level of access not only allows dealmakers to see what is happening right now but gives them greater awareness of what’s coming up, where they’re heading, and makes them more aligned.

The right AI at the right time

In M&A, timing is everything, and that includes adopting technology. Dealmakers tend to delay preparation until pressure forces action. In such a risk-averse industry, new tools must be not only secure but also seamlessly adoptable. Virtual Vaults saw AI’s potential early, but intentionally waited until it met their exacting standards. “We tested AI and machine learning for years,” Van de Vondervoort explains. “But it wasn’t ready, until now.” They didn’t want to replace human judgement. They wanted to enhance it. “Reputation, relationships, accountability, those matter deeply in M&A. So AI needed to work with users, not around them. That’s why we partnered with Microsoft Azure and OpenAI, to ensure our Redaction Assistant fits into existing workflows with enterprise-grade security at its core.” Kruithof is clear about the product’s purpose: “This isn’t automation for the sake of it. AI is an assistant that is born ready-made and always on. It accelerates what’s repetitive but leaves decisions where they belong, with the expert.”

Secure, smart, and designed for the mid-market

Historically, redaction was expensive and manual, especially for mid-market firms, who often accepted the cost of legal reviews as a necessary burden. Meanwhile, critical documents were still being exchanged via unsecured email. Virtual Vaults aimed to close that gap with a tool that was practical, affordable, and built with user habits in mind. From the start, the AI Redaction Assistant was developed with real users, especially during document collection phases, to ensure intuitive adoption. Through early access previews and user feedback loops, the tool rapidly improved and saw widespread adoption.

The Assistant now automatically identifies sensitive content, such as PII or commercially sensitive terms, and suggests redactions, categorized for review. Users can accept, modify, or skip suggestions, blending AI automation with manual input in a single, streamlined interface.

“Compliance remains non-negotiable, even for leaner teams,” Van de Vondervoort notes. “We’re giving mid-market dealmakers access to the kind of precision normally reserved for enterprise tools.” Kruithof adds: “What used to take days now takes minutes. That’s real ROI, real value.”

Looking ahead: from redaction to autonomous dealmaking

Virtual Vaults continues to push forward, always with the same principle in mind: if it’s not useful, it’s not ready. The next frontier? AI-supported due diligence that filters and highlights risks, freeing humans to focus on strategy. “We’re heading toward smarter due diligence, not to replace experts, but to empower them,” says Kruithof. “AI will help create consistency and sharper focus in early stages.” Van de Vondervoort envisions the long-term future: “Eventually, dealmakers will only decide: do we buy or not? Everything leading up to that moment, risk analysis, flagging red flags, accelerating data review, will be assisted by AI. That’s how you get faster, safer decisions.”

No gimmicks. Just real innovation.

Virtual Vaults is choosing evolution over explosion; delivering only what makes a difference. “We’re not chasing trends,” Kruithof concludes. “We’re building tools that dealmakers truly need. Innovation should work for people, not the other way around.”

Visit Virtual Vaults to learn more.

This article was originally published on Insider Media on September 10th 2025.