Long Lake's model succeeds by integrating three typically siloed competencies: private equity deal-making, top-tier AI engineering, and hands-on change management. They were purpose-built to combine these skills, allowing them to not only acquire companies but also effectively transform them with technology from day one.

Recognizing that enterprises struggle to deploy AI effectively, some PE firms are acquiring traditional businesses. Their strategy is to directly own the change management process, forcing AI implementation to unlock latent value that the original management couldn't capture on their own.

The success of an AI roll-up hinges on effective technology implementation. Therefore, the primary filter for acquiring a company is not just its financials but whether its leadership and culture are genuinely eager to adopt AI and transform their operations. This cultural fit is non-negotiable.

Amplitude's CEO acquired multiple founder-led companies as a deliberate strategy to counteract the inherent slowness of a large SaaS business. This injects a startup's pace and an AI-native mindset directly into the organization to accelerate its AI transformation.

A new startup strategy involves acquiring traditional businesses and dramatically increasing their margins by integrating AI. This approach requires a unique blend of M&A, operational change management, and AI expertise, differing from typical venture-backed company creation.

The acquisition of American Express Global Business Travel by the 2.5-year-old AI firm Long Lake for $6 billion represents a new phase in the AI revolution. Instead of just competing with legacy companies, AI-native firms now have the capital and ambition to acquire and transform them from within.

Ad giant Publicis Group's acquisition of data firm LiveRamp is not a traditional advertising play. It's a strategic move to own the foundational data collaboration layer needed to power AI agents, positioning the company to compete in the emerging trillion-dollar market of automating corporate workflows via "agentic transformation."

The strategy of acquiring incumbent companies to accelerate AI adoption is creating a new investment category. Unlike private equity, which optimizes existing assets for efficiency, this new class focuses on fundamentally transforming them into something entirely new.

AI's rapid evolution breaks traditional change management. Instead of top-down projects, identify employees naturally excited by this dynamism. Elevate these "culture carriers" to experiment, share successes, and help peers adapt, making transformation a continuous, peer-led process.