https://techcelerate.ventures The pace of U.S. M&A activity in artificial intelligence & machine learning (AI & ML) ramped up to record levels last year, soaring at a near linear rate since 2016 to 145 completed deals while value eclipsed the prior high of $8.5 billion to close on $21.3 billion. As recently as 2015, just 27 transactions closed on $2 billion in aggregate. The steep uptick in both value and volume follows several years of increased venture investment into the space.
AI & MACHINE LEARNING LANDSCAPE
DFIN + eBrevia: A case study of automation in
data extraction and contract analytics
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2 AI & MACHINE LEARNING L ANDSC APE
Executive Summary
Contents
Executive Summary
2
Industry
Developments
3
Q&A
4-5
AI & ML
Landscape
6-7
Dealmaking
Landscape
8-10
About Us
11
"DFIN had a lot of
foresight and now
has taken a head
start in this area."
N ED G A N N ON
PR E S ID E NT, E B R E V I A
The pace of U.S. M&A activity in artificial intelligence & machine learning (AI &
ML) ramped up to record levels last year, soaring at a near linear rate since 2016
to 145 completed deals while value eclipsed the prior high of $8.5 billion to close
on $21.3 billion. As recently as 2015, just 27 transactions closed on $2 billion in
aggregate. The steep uptick in both value and volume follows several years of
increased venture investment into the space.
Propelled by the need to stay on top of technological innovation, buying effective
startups over building bespoke internal systems has quickly emerged as a
preferred approach for sponsors and strategics alike looking to add AI- & ML-
enabled capabilities to their platforms. Since the start of 2008, half of all acquired
AI & ML companies in the U.S. had VC backing. With few exceptions, the others
had raised no institutional capital prior to purchase.
Dealmakers expect improved automation to drive down the time taken to conduct
due diligence while improving accuracy and controlling costs. As M&A strategies
shift in scope to capture emerging tech verticals, contract analytics could quickly
become indispensable to the review process for buyers that need to add new
capacities outside of their core competencies. That dynamic has the global
market for AI & ML poised to grow by 150% this year alone. Analysts estimate the
market will reach $191 billion in value by 2025 driven primarily by solutions for
the enterprise.
AI & MACHINE LEARNING L ANDSC APE 3
Industry Developments
37% CAGR
The global AI & ML m