Disclosing your company's use of AI actually makes it significantly less likely to be acquired by international buyers.
While transparency is usually seen as a way to build trust and 'grease the wheels' of a business deal, disclosing AI usage acts as a deal-killer. It highlights so many complex risks in data governance and national security that international buyers often choose to walk away rather than face the increased due diligence costs.
<div> The Role of Artificial Intelligence Disclosure in Shaping the Intensity of <span>International M&A Activity</span> </div>
SSRN · 6235598
The Role of Artificial Intelligence Disclosure in Shaping the Intensity of International M&A Activity By Yinhui Qi This study develops a novel firm-level measure of artificial intelligence (AI) disclosure intensity using large language models and examines how AI transparency shapes crossborder merger and acquisition (M&A) activity. We find that higher AI disclosure significantly reduces M&A liquidity: a one-standard-deviation increase in disclosure intensity lowers the cross-border M