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AI in corporate finance

Last month, ICAEW’s Corporate Finance Faculty launched the Artificial Intelligence in Corporate Finance hub – with content on AI and its application in dealmaking. Faculty manager Raquel Edward, who conceived and led the project, said: “The hub will act as a vital resource for advisers, as the use of AI inevitably becomes more integrated into the dealmaking process. As well as the greater insight and efficiency that AI can bring, there are the ethical considerations around the use of AI in deal advisory engagements. We have pulled together current thinking on best practice, which has been peer reviewed. The information on our hub will be updated as AI deployment develops.” 

The faculty’s AI hub brings together a wide range of resources, including expert member insights and features from Corporate Financier, which have mapped the development of AI in M&A. As well as outlining the benefits and risks of AI in a deals context, the hub sets out the practical considerations of using AI in the deal process.

“Using AI to complete deals will enable dealmakers to improve efficiency and reduce risks through better analysis and insights,” adds Edward. “And that should lead to fewer investment errors and more successful deals.”

Larger advisory and investment firms, with substantial resources and financial capabilities, are uniquely positioned to refine and optimise their own AI tools. But many firms are still in the early stages of AI deployment.

“Firms are on an AI journey, and at different stages,” says Edward. “The rapid pace of AI development means that firms are continuously evolving their technological strategies to stay ahead. Some will set a precedent and others will apply the lessons learned.”

Edward thanked a team of reviewers from member firms, who reviewed the hub content, ensuring it accurately reflects market practice: Jan Chan, partner and transactions and corporate finance AI lead, EY; Elizabeth Claridge, corporate finance senior manager, PwC; Graham Dotchin, associate partner, specialising in data insight, Azets; Lee Humble, UK head of corporate finance, Azets; Attul Karir, partner and deals chief technology officer, PwC; Oliver Nelson-Smith, tech policy manager, ICAEW; and Toby Popplewell, director and deals GenAI leader, PwC.

“Many AI experts working in corporate finance believe that AI will have a positive effect on the workforce as new roles and new necessary skills will emerge,” added David Petrie, ICAEW head of corporate finance. 

“It is thought that junior corporate finance employees will undertake fewer manual tasks and this should improve job satisfaction. But this needs to be carefully managed so that they get the fundamentals of their training too. I’d like to thank Raquel Edward for her work creating this incredibly useful resource, which we hope will help them navigate this AI revolution.” 

You can visit the new AI hub here

On 4 March 2025 the Corporate Finance Faculty will host a webinar on AI in corporate finance, free to ICAEW and Corporate Finance Faculty members. It will involve an online discussion with a panel of experts.

Annual Reception

The Corporate Finance Faculty held its Annual Reception last month at Fishmongers’ Hall in the City of London. Lord Clement-Jones CBE (above), co-chair of the All-Party Parliamentary Group on Artificial Intelligence, delivered the keynote speech on the impact of AI on corporate finance. ICAEW chief executive Alan Vallance also gave a speech to the packed hall, and Pearson plc was presented with the prestigious Corporate Finance Faculty Corporate Development Award. Read the full report on this ever-popular annual event.

Infrastructure forum in Leeds

The Corporate Finance Faculty and the National Wealth Fund (NWF) held an infrastructure investment forum for investors and advisers in Leeds last month. Just ahead of the forum, Chancellor Rachel Reeves announced in the UK government’s October Budget that the UK Infrastructure Bank was becoming the NWF, with £27.8bn of funding to target net-zero and regional infrastructure investment. Around 100 attendees at the forum heard how the NWF aims to be a catalyst for private capital investment in infrastructure, and how ICAEW members, corporate finance advisers and private equity principals can support infrastructure investment and deal flow.

“It is very clear that the NWF will play a key role in the delivery of the government’s industrial strategy, which was announced at the investment summit held by the government in the City of London in October,” said ICAEW head of corporate finance, David Petrie. “Changing from the UK Infrastructure Bank to the NWF is important as there is additional capital available, and its mandate has been broadened to include investment in local authorities and in support of Metro mayors. It’s not simply a rebranding exercise.”

NWF CEO and Corporate Finance Faculty board member John Flint (above) gave a keynote address. He said: “It’s a privilege to lead the new National Wealth Fund. We are looking forward to realising the opportunity that our broader remit brings, as we make investments and mobilise private finance beyond infrastructure, in support of the industrial strategy. It was a pleasure to discuss with the ICAEW community the collective challenge of sharing risk between the public and private sector to drive the growth this country needs.” 

This was followed by a panel discussion chaired by ICAEW head of corporate finance, David Petrie, the members of which were:

• Daniel Grosvenor, partner and head of government and infrastructure and global lead for power and utilities, Deloitte; 
• Paul Hirst, head of transport sector, Addleshaw Goddard; 
• James Pincus, corporate finance partner, PwC and Corporate Finance Faculty board member;
• Louise Shaw, partner, energy and infrastructure corporate finance, EY; and
• Eddie McAvinchey, Edinburgh-based banking and investments director, National Wealth Fund.

PwC’s Pincus said: “I would like to see the remit of the NWF include them being encouraged to take earlier stage risk to help interesting and innovative businesses get themselves up, and if not running, at least walking. The private sector would then be in a good position to take those businesses forward and scale them appropriately from there.”

By November 2024 the NWF had invested £4.6bn (of the £22bn that was then at its disposal) since its inception in 2021. It has deployed capital in 43 projects, which has mobilised more than £12bn in private capital, supporting an estimated 17,600 jobs. Energy transition is clearly a major investment opportunity, with the Chancellor planning to announce more detail on its industrial strategy in spring 2025. 

The panel suggested that private investors will need to be encouraged by the NWF to be open to riskier investments, at the more nascent stage of technology and be braced for a bumpy ride for certain technologies.

“To unlock many of the potential infrastructure projects in the UK, the NWF will need to consider funding feasibility studies and earlier stage investments in projects in order to kickstart proposals,” added Petrie. 

The faculty has established a close relationship with the NWF and will provide updates to members of its plans. “We were delighted John chose to work with us to be able to give the advisory and investment community a clear indication as to how they will be acting to support the government’s industrial strategy,” added Petrie. “He was speaking for the first time at our event since the Budget about how the NWF intends to work with the investment and advisory community.”

A consultation on the proposed industrial strategy closed on 24 November, details of which can be found here

DATES FOR THE DIARY

Prospecting for deals

The Corporate Finance Faculty’s first event of 2025 will be a Prospecting for Deals webinar on 21 January 2025, from 12:00-13:00. There will be a presentation on the investment themes we have seen in 2024 and the forward outlook for M&A through 2025 by Russell Enright, vice president at Intralinks.

This will be followed by a panel discussion on the year ahead and how global M&A and capital market activity is likely to be shaped by economic conditions and market trends. Book to attend here.

David Petrie will chair the panel discussion, which will consider the impact of recent announcements in the Chancellor’s Mansion House speech, and other regulatory changes. The panel will discuss which sectors are hot, and how additional cash earmarked for infrastructure is likely to be deployed.

The panel is to be finalised, but will include: Mohammed Senouci, corporate M&A and equity capital markets partner at Travers Smith, and Jo Davenport, Corporate Finance Faculty board member and BDO deal advisory partner.