News & Events
Will AI Replace Business Brokers?
Jeff Snell | 09/04/2023
Business brokerage involves understanding the needs of buyers and sellers, which requires human empathy, intuition, and years of experience.
AI, at its current stage, cannot emulate the human connection and role in business transactions.
CREATIVE PROBLEM SOLVING
Business brokerage often requires complex problem-solving to address unique transaction challenges.
AI cannot assess the many unique aspects of a complex and often shifting situation and ideate the ideal solution or alternate permutations that may ultimately meet stakeholder expectations.
Business buyers and sellers expect near real-time interpretation of a wide range of interrelated business factors.
AI cannot assess the whole and respond specifically with all other variables being weighed appropriately.
COMMUNICATION AND PROCESS MANAGEMENT
Business brokers manage the very complex process of preparing a business for sale through to closing, which requires the alignment of many and often competing goals between multiple stakeholders, including not only the buyer and seller but lenders, underwriters, the SBA, attorneys, accountants and other advisors as well.
The business brokerage industry is in a constant state of change. Forces such as the economy, interest rates, SBA guidelines, and industries experiencing growth or decline are just some of the aspects of the business-for-sale environment that business brokers must remain current.
AI algorithms cannot evaluate most real-time data, especially not across the many subject matters involved in a business transaction.
Used effectively, AI can aid business brokers in efficiently managing the business for sale process, but cannot replace the human aspects required to facilitate a successful transaction on its own.