Episode #22
Buying AI Capability Without Buying an Integration Problem With EY-Parthenon
Can a company buy its way to stronger AI capability, or does an acquisition create an entirely new set of integration, talent, and cultural problems? In this episode of Consulting the Future, I speak with Nadine Mirchandani, EY Global Deputy Vice Chair and EY-Parthenon Global Deputy Leader for Strategy and Transactions. We examine why mergers and acquisitions are becoming a route for companies seeking AI technology, specialist talent, and faster business change. According to EY-Parthenon’s CEO Outlook Pulse Survey, 48% of CEOs say stronger technology or AI capability is one of the most important factors shaping their M&A strategy. Nadine also notes that 80% of CEOs surveyed expect to increase AI investment. For many businesses, the build versus buy AI decision comes down to speed, scale, and access to talent. Developing mature capabilities internally can take years, while an acquisition may provide established technology and experienced teams. However, buying the asset does not automatically create the desired business outcome. Nadine argues that the acquiring company supplies something equally valuable: context. This can include proprietary data, existing customers, industry knowledge, capital, and routes to market. The opportunity comes from combining that context with the acquired team’s specialist skills without burying it beneath unfamiliar processes. That creates one of the hardest questions in AI mergers and acquisitions. How does a large institution integrate a smaller technology company while preserving the culture, working methods, and people that made it attractive? We discuss why integration planning needs to begin before the agreement is signed. Nadine explains that leaders must give employees on both sides a credible picture of their future within the combined organization. Trust, relationships, and clear opportunities to work together can determine whether specialist talent stays or heads for the exit. AI is also changing the M&A process itself. It can analyze large datasets, identify patterns, support deal sourcing, and provide teams with better information during due diligence. Nadine discusses EY-Parthenon’s OneEdge platform and its role across strategy, transactions, and subsequent business change. However, data cannot determine whether two leadership teams will work effectively together or whether their cultures are compatible. Major deals will continue to require experienced people who can assess business risk, relationships, trust, and behavior. The conversation ends with three questions for any CEO considering an AI acquisition. Why does the deal support the wider business strategy? Can the company integrate the capability and retain its talent? Does buying provide an advantage that an internal build cannot deliver quickly enough? If acquiring AI capability is the easy part, are businesses giving enough attention to the people, culture, and execution required after the deal closes? Listen to the conversation and share your thoughts with me.
