AI drove nearly half of IT M&As in past two fiscals: Crisil

Nearly half of the mergers and acquisitions (M&As) by India’s top information technology (IT) companies over the past two fiscals involved artificial intelligence (AI) and allied technologies, as companies sought to acquire capabilities in AI, cloud, data engineering and domain expertise, according to a report by Crisil Ratings.

Crisil’s analysis of acquisition rationales across 26 Indian IT companies found that AI has emerged as the defining theme of inorganic investments, replacing the focus on digital capabilities such as cloud computing, process automation and analytics that dominated acquisitions between FY19 and FY24.