3 minute read 15 Apr 2019
sea lions sea of cortes

Why talent and technology should be driving your M&A strategy

Positive outlook for M&A is driven by a need for talent and tech. What should you do to keep up?

In tight labor markets, technology may provide bandwidth for growth. Rising levels of employment make technology integral to future talent strategies.

According to the EY Global Capital Confidence Barometer, the use of technology, automation and AI for some routine processes is increasing as labor becomes scarcer and the battle for talent intensifies. This could enable companies to free up valuable resources to focus on broader strategic issues.

Often, the impact of new technologies is overestimated in the short term and underestimated in the long term. In some cases, expectations are too high about the immediate benefits of automating routine tasks. But, paradoxically, the potential opportunities and benefits of AI are still, if anything, underestimated. While there is much speculation regarding AI, there has been a lack of detailed analysis of how it will really transform businesses.

Most organizations are not exploiting the full potential of artificial intelligence — they are just at the beginning of their AI journeys. What may be holding companies back is the undersupply of talent, but it may also be the difficulty in imagining the art of the possible.

Front- and back-office processes set to be revolutionized by AI and automation

Executives are more confident in developing front-end services. Using AI and automation to increase personalized products or services and improve the customer experience is the top priority for executives.

With back-office functions, including finance, talent and compliance, they are also looking to automate to work smarter and more efficiently.

In an increasingly competitive world, front- and back-office transformation likely needs to happen simultaneously.


The EY Global Capital Confidence Barometer (pdf) gauges corporate confidence in the economic outlook and identifies boardroom trends and practices in the way companies manage their Capital Agendas.