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By Jerome Pottier
AI integration has become a strategic priority for European businesses seeking long-term competitiveness. Jerome Pottier highlights how mergers and acquisitions are emerging as a key pathway for accelerating adoption. His analysis explains why acquiring AI expertise through M&A allows firms to overcome barriers of cost, talent, and scalability while driving measurable business value.
AI integration is a top strategic priority for many businesses. In fact, close to 70% of financial services CEOs have said their organisations must invest in generative AI (GenAI) now to maintain a competitive edge. The awareness is part of an evolving narrative, one where companies are using and implementing AI from exploration and research.
It’s a trend that is unfolding in Europe. Some research shows that the proportion of European firms using AI rose to 42% in 2024 from 33% in 2023. Yet other findings show that less than half (48%) of Europe’s largest organisations have been able to scale a major AI initiative, with this figure dropping to 31% for mid-sized firms. The reasons for this range from the initial costs through to the project complexity and competitive skill required to create, implement and scale.
Executives have realised that AI is not just a productivity tool but a technology that can deliver real value for its clients. The question then is what approach they should take to ensure the effective integration of AI into their organisation.
There are three strategic paths they can consider.
The first is building an AI solution in-house. This gives businesses full control over data, customised tools and integration with existing systems. A 2023 survey found that nearly 60% of high-performing AI adopters choose to build internally because it ensures better alignment with company goals and values. However, this path requires substantial investment, talent, time and infrastructure.
The second option is partnering with a third-party vendor offering turnkey solutions with readily available expertise. This model offers ready-made platforms, pre-trained models, and the convenience of plug-and-play deployment. It’s especially appealing for small and medium businesses that want quick wins without deep investment. Some research shows that companies using third-party solutions can get to market twice as fast compared to those building from scratch. However, vendor solutions often come with limitations on customisation, pricing flexibility, and, crucially, on data ownership. There is also the risk of companies becoming locked into one ecosystem, unable to pivot without significant switching costs.
The third path is acquiring a specialist AI company to enhance a company’s service offering and operational capacities. When appropriately executed, it ensures companies have access to advanced technologies, intellectual property and skilled talent.
This approach reflects a broader trend in the M&A industry. Some technology providers are increasingly integrating AI-powered workflow collaboration and automation solutions to help professionals work more efficiently. For example, Datasite recently completed the acquisitions of Grata, Blueflame AI and Sourcescrub, as part of a strategic shift toward deeper integration of AI and private market intelligence
M&A activities in Europe
Looking ahead, there are likely to be more M&A deals involving AI. Technology, media and telecommunications (TMT) deals on Datasite, which facilitates about 19,000 new deals annually, rose 3% year on year in the first half compared to the same time a year ago. Since these are deals at their inception, rather than announced, it provides a good indication of what’s to come.
Dealmakers will still tread cautiously, ensuring that they pursue the right opportunities and are aware of the regulatory and compliance developments that are governing how companies both use and disclose their AI capabilities. This is particularly important for Europe.
The European Union’s (EU) AI Act has now debuted. The market reaction to this has been mixed with questions over how these new rules will impact innovation and deployment of tools. Deal hold rates on Datasite rose in the first half, compared to the same time a year ago, while the rate of closures declined, and PE funding raising and capital raises are also down.
The impact of the EU’s AI Act and future regulatory announcements will become clearer in the coming years. Yet, for now, AI-led M&A is likely an attractive option for many companies and investors.
About the Author
Jerome Pottier is Chief Revenue Officer for EMEA at Datasite Enterprise, overseeing sales strategy and teams across the region. He joined Datasite in 2008, previously leading Western Europe. Earlier, he held roles at Compuware, Overlap, and Open Care. Jerome holds business degrees from New Castle University and IUP de Sceaux.
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