Because boards lack deep expertise in AI's seismic impact, they are pursuing scale-driven M&A. The goal is to accumulate diverse assets ('cards in a deck') to maintain flexibility and strategic options in an unpredictable, AI-driven future, rather than making specific bets on the technology itself.

In AI acquisitions, a startup's underlying technology is less important than its "workflow proximity." Atlassian's AI head advises buyers to assess how deeply a tool is integrated into a user's fundamental daily tasks. A tool central to a core workflow is far more valuable and defensible than a specialized, peripheral one.

Instead of selling software to traditional industries, a more defensible approach is to build vertically integrated companies. This involves acquiring or starting a business in a non-sexy industry (e.g., a law firm, hospital) and rebuilding its entire operational stack with AI at its core, something a pure software vendor cannot do.

Unlike standard corporate M&A, an innovation incubator's acquisition criteria are different. Cisco's Outshift ignores a startup's revenue and business metrics, focusing solely on the technology, talent, and cultural fit to accelerate its own strategic objectives.

For fragmented, tech-averse industries, GC funds startups to first build an AI automation platform. Then, instead of a difficult sales process, the startup acquires traditional service businesses, implementing its own AI to dramatically boost their margins, providing immediate distribution and data.

Competing in the AI era requires a fundamental cultural shift towards experimentation and scientific rigor. According to Intercom's CEO, older companies can't just decide to build an AI feature; they need a complete operational reset to match the speed and learning cycles of AI-native disruptors.

C-suites are more motivated to adopt AI for revenue-generating "front office" activities (like investment analysis) than for cost-saving "back office" automation. The direct, tangible impact on making more money overcomes the organizational inertia that often stalls efficiency-focused technology deployments.

The key to leveraging AI in sales isn't just about learning new tools. It's about embedding AI into the company's culture, making it a natural part of every process from forecasting to customer success. This cultural integration is what unlocks its full potential, moving beyond simple technical usage.

Viewing acquisitions as "consolidations" rather than "roll-ups" shifts focus from simply aggregating EBITDA to strategically integrating culture and operations. This builds a cohesive company that drives incremental organic growth—the true source of value—rather than just relying on multiple arbitrage from increased scale.