The second half of 2025 is already shaping up to be a decisive period for banking mergers and acquisitions (M&A). Transaction pipelines are filling, balance sheets remain strong, and technology, particularly artificial intelligence (AI), is redefining what gets bought and how buyers behave. New global deal launches on Datasite, which facilitates about 19,000 new deals annually, rose about 3% compared with H1 2024, showing that appetite for transactions has not faded. On the target side, AI firms have become acutely desirable, even for traditional banks. Acquiring AI capabilities is about survival as much as growth. Banks are buying firms that can reduce compliance costs, predict customer needs, and automate lending or risk decisions. Smaller fintechs with specialized AI capabilities, such as fraud detection, know your customer (KYC) automation, or personalized wealth tools, are now at the front of the line. On the acquirer side, AI is changing how deals get done. Banks are using AI-driven analytics to screen targets, simulate synergies, and stress test proforma financials under different economic scenarios. In due diligence, natural language processing tools scan loan books, contracts, and regulatory filings in days rather than weeks. Execution is becoming faster, more transparent, and in some ways more disciplined. AI is speeding both the why and the how of banking M&A. It sharpens deal rationale and quickens execution. That is why it is no longer only technology-driven banks making acquisitions; traditional lenders of all sizes are joining in.