Disclosing your company's use of AI actually makes it significantly less likely to be acquired by international buyers.
April 1, 2026
Original Paper
<div> The Role of Artificial Intelligence Disclosure in Shaping the Intensity of <span>International M&A Activity</span> </div>
SSRN · 6235598
The Takeaway
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.
From the abstract
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