AI complicates software firm valuations, says Apollo

David Sambur, Co-Head of Private Equity at Apollo, suggests that the rapid advancements in artificial intelligence are making it increasingly challenging to accurately value software companies. The dynamic nature of AI integration and its potential impact on business models introduce a layer of complexity to traditional valuation methods. Sambur noted this during a discussion on dealmaking, implying that the uncertainty surrounding AI's long-term effects adds to the existing volatility in the market, though he also acknowledged that such conditions can present opportunities for astute investors.