      Lazard Technology Advisory · 2025-10-13
      · 234d
    

AI Impact on Technology M&A: Strategic Narratives and Deal Dynamics in 2025

Lazard's analysis examines AI as a transformative yet risky force in technology M&A, characterized by intense competition between AI-native startups and incumbent software companies. Success hinges on articulating clear AI value narratives centered on data defensibility, workflow integration, and sustainable competitive moats rather than novel models alone. Modern deal processes require evolved due diligence frameworks that assess AI maturity, data provenance, and governance to navigate both massive investment opportunities and significant deal failure risks.

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Metrics in this report

Global VC Capital Allocation to AI

57.9%

Q1 2025

of total global VC dollars invested

North America AI/ML Deal Value Share

70.2%

current

of total North America deal value

PE Deal Abandonment Due to AI Concerns

70%

past year

of PE respondents who backed out of at least one deal