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.
The report noted that “AI-related deal activity in North America reached new highs between 2021 and 2025, with volume accelerating sharply from 2023 onwards. The share of AI deals nearly doubled in the past two years, confirming AI as a major focus for investors and companies alike.”
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.
Fintech momentum
According to the report, “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. AI has moved well beyond a niche innovation.”
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.