AI M&A appears to be a bright spot swimming against the macro headwinds in Asia‑Pacific. Overall APAC deal‑making has slipped as economic uncertainty, higher rates, geopolitics and election calendars weigh on sentiment. Yet within that backdrop, industry trackers report that the aggregate value of APAC AI‑focused tech deals grew about 5%-10% during 2024, and early‑2025 valuations are edging higher even as volumes decrease. Market observers attribute this resilience to a scarcity premium driven by the limited number of truly differentiated models, proprietary datasets and specialist teams. Sustained enthusiasm for AI keeps bidding pressure and valuations elevated.
That scarcity premium, however, does not justify weak economics or underwrite risks and liabilities of acquiring an AI business. Buyers may still cite “capability premiums”, yet tighter liquidity from higher interest rates, sharper regulatory scrutiny (FDI, export-control and data-localization) and rising capex requirements and increased operating costs are driving increased scrutiny on individual opportunities. In this environment, a credible monetization pathway – cost synergies, accelerated product launches or data-driven revenue – appears increasingly indispensable to defend headline multiples.
Execution risk is also climbing. National security reviews, data‑localization mandates and more assertive antitrust scrutiny mean cross‑border AI deals now require a disciplined evaluation of deal certainty and post-completion regulatory risks. Value preservation is equally complex because a large share of consideration hinges on retaining human talent and expanding and monetizing the acquired capability.
This Playbook surveys APAC AI M&A as of Q1 2025. Interest from financial investors and strategics (inorganic capability lift, deeper data moats, scale and pricing power) remains high, but obstacles are becoming more significant.
Click here to read the full insight: “AI: Acquiring Intelligence – APAC M&A Legal Playbook 2025.”
