Bain says it is using AI coding tools to recreate pieces of target companies' software, making hundreds of rough prototypes in recent years as due diligence (Ryan McMorrow/Financial Times)

Bain & Company is leveraging AI coding tools to rapidly reverse-engineer and prototype target companies' software during M&A due diligence, enabling faster competitive assessment and valuation of acquisition targets. This trend signals that AI-driven code generation is becoming a strategic capability for deal evaluation and could accelerate technology integration post-acquisition, fundamentally changing how PE firms assess software IP value. CIOs should recognize this as both a competitive threat to proprietary code protection and an opportunity to modernize legacy systems through AI-assisted modernization initiatives.