AI Literacy is the New Due Diligence: Why It Matters for Company Valuation

AI Literacy is the New Due Diligence: Why It Matters for Company Valuation

If you're thinking about an exit in 2025 or beyond, here's the reality: acquirers are no longer just scanning your financials—they’re asking how AI-literate your leadership team is, whether your AI systems are ethical by design, and how AI drives measurable outcomes across the business.

In today’s M&A landscape, AI readiness is a valuation lever.

According to McKinsey’s 2025 M&A report, a European industrial firm used GenAI to screen over 500 acquisition targets. What set the top candidates apart? Mature data pipelines, embedded AI workflows, and leadership teams fluent in AI strategy.

This isn’t a trend. It’s a shift.

The AI-Literate Company Commands a Premium

More than ever, acquirers are looking for:

• AI-Literate Boards & Leaders: Can your executive team speak the language of AI risk, governance, and opportunity?
• Responsible AI Frameworks: Is your AI ethical, explainable, and aligned with compliance regulations like the EU AI Act?
• Demonstrated Use of AI for Business Outcomes: Beyond prototypes and pilots—does AI drive real results?

Companies that can answer “yes” are seen as lower risk, faster to integrate, and better positioned to scale in an AI-first economy.

Case Study: Oncoscope-AI

HealthTech founder Anna Forsythe built Oncoscope-AI with a simple but radical idea: that AI in healthcare must be human-verified, domain-led, and workflow-integrated. The result? A product that oncologists trust—and a business investors want to back.

Her approach highlights what acquirers are increasingly valuing: AI that is responsible, explainable, and usable in high-stakes contexts.

Why AI Literacy is a Strategic Asset

AI literacy isn’t just about understanding machine learning. It’s about leadership teams that:

• Know how to ask the right questions
• Understand where AI fits into strategy, risk, and compliance
• Can oversee implementation without abdicating responsibility to tech teams

In this sense, AI literacy is the modern version of financial literacy. It empowers better decisions, builds trust with stakeholders, and becomes a signal of long-term resilience.

The Bottom Line

AI isn’t just changing how companies operate—it’s redefining how they’re valued.

If your leadership team can’t articulate how AI is governed, used, and aligned with outcomes, you risk being discounted—or overlooked entirely—in a future exit.

Ready to future-proof your strategy?
Let’s talk about designing an AI Literacy Program for your board and executive team that aligns with regulatory demands and strategic value creation.

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Orcawise is an AI advisory and services firm, serving business leaders from hubs in Dublin, London and New York.

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