BELGIUM Trends and Developments Contributed by: Steven De Schrijver, Allegiance Law
synergy achievements and aid in creating effec- tive success playbooks. Points to focus on in use of GenAI during course of M&A Despite the fact that GenAI systems can deliver a lot of benefits for the M&A stakeholders, they need to use GenAI systems carefully. There are a number of reasons for this. First of all, one should avoid using financial, confidential and sensitive personal data when prompting the GenAI system. In that respect, it is also highly important to take into account all the requirements of data protection legislation if personal data are used as an input data – for example, requirements to register such a use as a processing activity in a data register or to designate an appropriate legal basis for the pro- cessing of personal data. Additionally, one should also take into consid- eration the requirements of the newly adopted EU AI Act. Notably, it is advisable to check if the GenAI systems used fall under the category of high-risk AI systems. If this is the case, then a whole range of additional obligations must be fulfilled – one of which is the Conformity Assess- ment (ie, the evaluation of the effect of a high- risk AI system on human rights and safety). Integration of Gen AI Systems into Businesses’ M&A Strategies The integration of GenAI into businesses marks a new era of efficiency and innovation, enabling automation of complex tasks, sophisticated analysis of large datasets, enhanced idea gen- eration and improved content quality, among other benefits. According to PwC’s 27th annual global CEO survey of 2024, nearly half of CEOs expect GenAI to strengthen trust with stakehold- ers in the coming year and around 60% foresee
improvements in product and service quality, driving heightened competition in their markets. To fully capitalise on opportunities for optimisa- tion through AI and other digital tools, compa- nies will need close alignment between their IT and business functions to ensure a strategic and sustainable approach to value creation. PwC’s survey reveals that most respondents anticipate GenAI’s influence on their future M&A strategies. However, qualitative feedback also highlights the challenges of navigating AI’s rap- id acceleration in M&A, with some respondents grappling to understand its full potential and the synergies it could unlock. Many respondents are already considering GenAI’s impact on their M&A process, from identifying and assessing targets to driving AI capabilities within portfolio companies. Some are even actively exploring GenAI solutions to enhance value creation. Interestingly, while respondents are increasingly focused on IT and cybersecurity due diligence, these areas still rank low on the list of M&A priorities – despite rising technology-related risks. This underscores the need for a proactive approach to IT and cyber risk management in an AI-driven landscape. Belgian Tech M&A Landscape in 2024 According to the “State of Belgian Tech Report 2024” conducted by Sofina, Syndicate One and Bain & Company, investment in Belgian tech start-ups surged in the first half of 2024. Funding reached nearly EUR500 million across just eight companies, approaching the entire 2023 total of EUR424 million within only six months. This trend suggests a record-breaking year ahead for Belgium’s tech ecosystem.
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