AI’s Widening Trust Gap

The pace of AI’s capabilities is outrunning dealmakers’ trust in it. 63% of respondents say due diligence is where AI adds the most value, ahead of valuation analysis (42%), contract review (36%), and target identification (34%). The risk picture tells a more cautious story: accuracy and reliability (38%) tops the list, followed by concerns about over-reliance and de-skilling of dealmakers (27%) and data privacy (23%).

Those two concerns together point to a deeper unease than a simple fear of technical error. Dealmakers aren’t only worried that AI will get something wrong. They’re concerned it will erode the judgment that separates a good dealmaker from a mediocre one.

The insurance market is adjusting accordingly. 41% of respondents expect representation and warranties policies to expand specifically to address AI-related risks, and roughly a quarter expect underwriting itself to become more rigorous as a result. AI’s role in dealmaking might be expanding, but so is the infrastructure tasked with keeping it contained.