Every major corporate strategy conversation now has the same uninvited guest: artificial intelligence. And where strategy conversations go, investment bankers follow.
Wally Cheng, Morgan Stanley’s Global Head of Technology M&A, is making the case that AI-related acquisitions are set to accelerate across industries and deal sizes. Not just mega-deals between tech giants, but transactions spanning sectors that historically had little to do with machine learning or neural networks. Think healthcare, manufacturing, financial services, and logistics, all racing to bolt on AI capabilities before their competitors do.
The AI acquisition arms race
Here’s the thing about corporate AI strategy in 2024: building it in-house takes too long. Training specialized models, hiring scarce talent, and assembling proprietary datasets can burn years. For companies feeling competitive pressure right now, buying is faster than building.
That dynamic is what Cheng is pointing to. The pressure on companies to enhance their AI capabilities has become a primary catalyst for M&A activity, creating demand from both strategic buyers and financial sponsors. Strategic buyers want the technology integrated into their existing operations. Private equity firms see AI-native companies as portfolio plays with outsized growth potential.
