Tilman Ost, KPMG's global private equity advisory leader, emphasizes the five-plus-five asset cycle as critical in today's AI landscape. Investors remain positive on software but require niche, mission-critical applications, reflecting the industry's selective approach amid rapid technological change.

Europe faces heightened scrutiny on tech-adjacent deals, according to A&O Shearman, as private equity firms reassess positioning against generative AI. Exits may increase this year through public routes, creating potential opportunities for investors navigating the evolving market dynamics.

Ost suggests the corporate venture capital market may have peaked, signaling a shift in investment strategy. This development underscores the need for more disciplined approaches in tech investments, with greater focus on applications demonstrating clear value beyond AI hype.