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 courses provide technical grounding in how these systems work. AI for Finance courses address how the technology applies to deal analysis and financial strategy.
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