Artificial intelligence has become a dominant force in North American mergers and acquisitions, with dealmaking reaching unprecedented levels and expanding beyond the technology sector, according to a new report from With Intelligence, now part of S&P Global.
The April 2026 report, titled AI Deals: Activity continues to increase across industries, found that AI-related transactions climbed to record highs between 2021 and 2025, with activity accelerating significantly after 2023. Over that five-year span, 1,634 AI-related deals were completed across North America.
The pace picked up sharply last year. In 2025, deal volume rose to 589 transactions, compared with 375 in 2024, representing a 57% increase year over year. AI transactions are also accounting for a larger slice of the broader M&A market. In 2021 and 2022, AI deals represented just 2% of all transactions. By 2025, that figure had grown to more than 7%, underscoring the technology's growing strategic importance to both corporate acquirers and private equity investors.
Software has emerged as the dominant destination for AI investment. Between 2021 and 2025, the sector accounted for 1,183 transactions, or 72% of all AI-related deals. Within software, AI-related deals rose from approximately 7% of all software transactions in 2021 to nearly 30% in 2025, highlighting how artificial intelligence has evolved from a specialized capability into a standard component of software offerings.
Momentum is also building within professional services, financial technology, industrial goods and IT services. Within software, business intelligence and process automation remain the largest subindustries, reflecting demand for data-driven tools that boost efficiency. Healthcare analytics, HR and workforce support systems and marketing software are also growing, showing AI’s broader use in both business operations and customer engagement. The report noted that AI has moved well beyond a niche innovation.
In fintech and data, AI deals now represent almost 15% of all transactions, while professional services, industrial goods and IT services are also seeing increased investment as firms look to incorporate AI into their core operations. This trend aligns with broader industry shifts, as highlighted in a recent Deloitte survey showing that 71% of private firms prioritize revenue growth amid surging AI investment.
The composition of deal sizes has shifted as well. While transactions under $50 million continue to make up more than two-thirds of the market, 2025 included several outsized acquisitions, with 8% of reported deals valued at more than $2 billion. The report cited two notable software transactions: Bow River Capital's acquisition of MEquilibrium in a deal valued between $10 million and $49 million, and Workday's purchase of Paradox Inc. for between $2 billion and $5 billion.
Infrastructure supporting AI development is also attracting attention. The report pointed to rising investment in data centers, power systems and hardware needed to train and deploy large-scale models, even as trade tensions and tariffs dampened activity in some segments during 2025. This infrastructure buildout has implications for various sectors, including software lending, where AI disruption is reshaping credit markets.
For financial advisors, the surge in AI M&A underscores the need to monitor portfolio exposure to technology and related sectors, as well as the potential for increased volatility in private markets. The report's findings also highlight the growing importance of AI in business operations, which could drive demand for financial advice as companies and individuals navigate this evolving landscape.
