In just a few short years, artificial intelligence (AI) has shifted from a futuristic concept to an everyday business driver. From predictive analytics to automated workflows, AI is reshaping the way companies operate, make decisions, and grow.For business owners thinking about an exit—and for buyers looking to invest wisely—understanding AI’s role in modern business isn’t just helpful. It’s essential.
Here are five of the most significant ways that AI is transforming the business landscape in 2025 and what it means to anybody buying or selling a business:
1. AI is Turbo-Charging Operational Efficiency
Organizations across industries are using AI to streamline their operations. From automating customer service via chatbots to forecasting inventory needs via predictive analysis, companies are finding new ways of cutting costs and improving productivity.
Why it matters for M&A: A business that has solid AI-driven systems is more scalable, profitable, and attractive to buy. If you’re selling, emphasizing the way you’ve brought AI on board can be a selling point.
2. Data-Driven Decisions Are Now the Norm
AI helps businesses overcome gut instinct by analyzing huge volumes of data in real-time. From sales trends to customer behavior, machine learning algorithms make data-driven decisions that result in wiser, faster decision-making.
For shoppers: A company with AI software embedded can potentially already be making better decisions. For sellers, a solid data framework can add perceived value and credibility.
3. AI Is Creating New Customer Experiences
Personalization is not an option anymore—it’s required. AI enables businesses to personalize products, services, and advertising to individual customer preferences, driving engagement and loyalty.
In deal terms: Businesses that use AI for customer personalization often have stronger customer retention metrics, which can directly impact valuation and attractiveness in the eyes of potential buyers
4. Talent and Skill Sets Are Changing.
Executives are now observing a growing demand for employees who can work with AI tools or design systems to further their utilization. Firms are spending money on retraining existing employees or hiring workers with AI fluency.
What buyers need to ask: Does the firm possess the right talent mix for the future? For sellers, being in a position to demonstrate a staff that has adapted to AI can help mitigate fears of buyers of transition risk.
5. AI Is Spurring Innovation and New Business Models
From AI-driven manufacturing to AI-generated content, companies are leveraging AI to bring entirely new products and streams of revenue to the table. This shift is enabling more nimble, responsive business models.
For both buyer and seller: A company with AI-powered innovation isn’t only delivering better today—it’s positioned for tomorrow’s success. That long-term capability is what buyers and investors must be looking for.
Last Thought: AI as a Strategic Lever in M&A
AI isn’t just transforming the way companies operate—it’s transforming how they’re valued, purchased, and exchanged. First Midwest Advisors is assisting sellers in emphasizing the value of AI in their business and guiding buyers on how to determine its worth. Now is the time to understand how AI is reshaping the market—because staying ahead of the curve means knowing where business is going, not just where it’s been.