IRELAND Trends and Developments Contributed by: Enda Garvey, Brian McCloskey and Robert Maloney Derham, Matheson LLP
ate the industry, as well as a result of EU regulatory changes, including most notably the AIFMD 2.0 loan origination changes, which harmonise the rules for pri - vate creditor funds in each EU member state. The Use of Generative AI As is the case across all sectors, the ability of gen - erative artificial intelligence (AI) to streamline proce - dures when it comes to dealmaking is an issue which is increasingly coming to the fore. According to a September 2024 Bain & Company survey of private equity investors representing USD3.2 trillion in assets under management, a majority of their portfolio com - panies were in some phase of generative AI testing and development, and nearly 20% of companies had operationalised generative AI use cases and are see - ing concrete results. In addition, a March 2025 report from Accenture highlights that where generative AI is used in dealmaking, the most common use stages within the deal life cycle are deal sourcing and screen - ing and due diligence. These findings indicate that although the use of generative AI exists in the mar - ket and is beginning to yield positive outcomes for some, the stage of usage and expected outcomes vary across the industry. Given the data-heavy nature of investment analysis, generative AI is a useful tool in sourcing deals and easing the burden of the due diligence process; how - ever, the issues of data security, data bias and sus - ceptibility to cybercrime continue to be impediments to the ability of investors and their law firms to fully harness the potential of generative AI in dealmaking processes. The use of generative AI also raises issues in terms of regulation. On 1 August 2024, the EU Artificial Intel - ligence Regulation (the “AI Act”) officially entered into force; however, its obligations are being introduced on a graduated basis. For example, the rules applica - ble to certain general purpose AI models entered into force on 2 August 2025 and the AI Act will be fully in force in Ireland by mid-2027. The increased regulation of the use of AI places a greater burden of compli - ance upon those companies that harness generative AI technology. Under the AI Act, failure to comply with such compliance requirements can lead to significant financial penalties.
As private equity firms implement AI technology within their own operations, there is an increasing expecta - tion that it will be used to streamline legal work asso - ciated with their transactions. This places an onus on law firms to adapt their procedures and processes in a responsible manner to ensure that their work ben - efits from the efficiencies of AI while at the same time ensuring that appropriate safeguards are in place. Conclusion As corporate buyers and private equity firms are afforded greater visibility over interest rate trajectories, with inflationary fears beginning to subside and with lenders’ appetite for funding M&A increasing, there is a sense of cautious optimism that M&A opportunities will continue to arise during 2025. Certainly, where pri - vate equity funds have greater certainty over financ - ing costs and access to debt, we expect to see an increase in the number of sponsor-led transactions during the second half of this year. With over 65 ILPs now established in Ireland and the positive feedback from both managers and investors on their experiences with the new structure, we expect the new ILP regime to cement Ireland as a key jurisdic - tion for private equity, real estate and infrastructure fund formation going forward. In Ireland, the sectoral trends we have seen over the last few years across the wider M&A market – with technology, financial services, and energy and infra - structure to the fore – will continue to be important for M&A activity this year as those sectors continue to perform well and grow. The ongoing digitalisation of businesses across a range of sectors, the green transition and the need for corporates to invest in new capabilities to drive growth will, undoubtedly, continue to attract interest from financial sponsors and drive further M&A activity.
277 CHAMBERS.COM
Powered by FlippingBook