Associate Partner Grace Ogilby shares a practical framework for investors navigating software assets amid growing generative AI disruption. As the technology reshapes core workflows and introduces new capabilities across the value chain, it is also challenging traditional sources of competitive advantage, prompting investors to reassess which categories, and which assets, are most likely to remain resilient.
Grace highlights our AI Resilience Diagnostic, which starts by evaluating the product category, as certain software segments are more exposed to generative AI than others. Categories whose outputs can tolerate probabilistic results tend to face greater disruption, while those requiring high determinism, deep domain expertise, or specialized reasoning are typically more insulated.
From there, assessing a product’s moats, technical and non‑technical, is essential. Technical moats can include proprietary datasets, specialized model architectures, or deeply embedded workflows that make replication difficult. Non‑technical moats often stem from switching costs, regulatory constraints, ecosystem partnerships, or long‑standing customer trust. Understanding how these different types of advantages withstand the pressures created by generative AI helps investors form a clearer view of long‑term resilience.
Taken together, these considerations form a structured lens for evaluating software assets today. The goal is not only to identify risk but also to understand where defensible, durable value is most likely to emerge.
How Altman Solon can help
Altman Solon leverages the AI Resilience Diagnostic across the investment lifecycle. Typical applications include:
- Integrated commercial and technical diligence anchored in category and company moat assessment.
- Investment decision support across the deal cycle linking resilience drivers to growth durability, pricing power, and value-creation priorities.
- AI resilience diagnostics to inform product and growth value creation priorities.
About Altman Solon: Technology
Altman Solon is the world’s largest strategy consulting firm focused exclusively on telecommunications, media, and technology (TMT). In the technology sector, we support high-stakes decisions across software, infrastructure, hardware, and services, spanning growth strategy, go-to-market design, transaction support, and post-deal value creation.
Who we work with
- Software and SaaS companies (horizontal, vertical, and AI-native products)
- FinTech and digital commerce platforms
- Digital infrastructure players (including cloud, interconnection, edge, and data centers)
- Semiconductor and hardware companies across the value chain
- IT and managed services providers (including cybersecurity, analytics, and application services)
- Private equity, growth investors, infrastructure funds, lenders, distressed investors, and hedge funds
How we support M&A and transaction diligence
- Investment screening and market landscaping (market mapping, whitespace, and thesis validation)
- Commercial due diligence (category dynamics, buyer needs, GTM effectiveness, and plan validation)
- Technical due diligence (technology, systems, IP considerations, and implications for scale)
- Portfolio optimization and value creation planning (pricing, GTM productivity, product strategy, and operating model levers)
- Post-merger integration and 100-day planning (integration priorities and execution governance)
- Exit strategy and equity story development (positioning, metrics, and readiness planning)
