# AI deals rise 57% in 2025 as software captures nearly three-quarters of North American transactions

> North American AI deals hit 589 transactions in 2025, up 57% from the prior year, with software companies capturing 72% of all acquisitions. AI now accounts for more than 7% of all M&A activity, versus 2% in 2021.

- Type: AI news
- Page: https://completeaitraining.com/news/ai-deals-rise-57-in-2025-as-software-captures-nearly-three/
- Published: 2026-05-12
- Updated: 2026-05-12
- Author: Jeroen Erne
- Jobs: Finance, IT and development
- Reading time: 2 min

### AI M&A surges as software captures nearly three-quarters of North American deals

Artificial intelligence transactions in North America hit record levels in 2025, with software companies accounting for 72% of all AI-related acquisitions, according to a report from With Intelligence, now part of S&P Global.

Deal volume jumped 57% last year. In 2025, companies and investors completed 589 AI-related transactions, up from 375 in 2024. Over the five-year span from 2021 to 2025, North America saw 1,634 AI deals total.

AI transactions now represent more than 7% of all M&A activity, compared with just 2% in 2021 and 2022. The shift reflects how central the technology has become to corporate strategy.

#### Software dominates, but AI spreads across industries

Software companies captured 1,183 transactions between 2021 and 2025. Within that sector, AI deals rose from roughly 7% of all software transactions in 2021 to nearly 30% in 2025.

Business intelligence and process automation remain the largest software subsectors. Healthcare analytics, HR systems, and marketing software are also growing, showing AI's expansion beyond back-office operations into customer-facing tools.

Growth extends beyond software. Fintech and data companies now see AI deals representing almost 15% of all transactions. Professional services, industrial goods, and IT services are also increasing investment as firms build AI into core operations.

#### Deal sizes vary widely

Most AI transactions remain small. More than two-thirds of deals fall below $50 million. But 2025 included several major acquisitions: Workday's purchase of Paradox Inc. valued between $2 billion and $5 billion, and Bow River Capital's acquisition of MEquilibrium valued between $10 million and $49 million.

Eight percent of reported deals exceeded $2 billion in value, a notable shift from prior years.

#### Infrastructure investment growing

Beyond software companies, buyers are targeting infrastructure needed to develop and deploy AI systems. Data centers, power systems, and hardware for training large-scale models are attracting increased investment, though trade tensions and tariffs slowed some activity during 2025.

The sustained deal flow suggests investors expect AI to remain a long-term driver of efficiency and business transformation across industries.

Finance and IT professionals tracking M&A trends may benefit from understanding the technology driving these deals. [Generative AI and LLM](https://completeaitraining.com/tag/generative-ai-and-llm/) courses provide technical grounding in how these systems work. [AI for Finance](https://completeaitraining.com/tag/finance/) courses address how the technology applies to deal analysis and financial strategy.

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