Artificial Intelligence M&A

Solganick & Co. provides investment banking and M&A advisory to companies that develop and provide Artificial Intelligence (AI) software, solutions, and services. Our team can support all types of mergers and acquisitions to build shareholder value.

The artificial intelligence market is booming as the world’s tech giants compete for the top AI talent and technologies, with Microsoft and Google leading the way with several acquisitions under their belts.

According to IDC, worldwide spending on artificial intelligence (AI) systems is forecast to reach $35.8 billion in 2019, an increase of 44.0% over the amount spent in 2018. With industries investing aggressively in projects that utilize AI software capabilities,  IDC expects spending on AI systems will more than double to $79.2 billion in 2022 with a compound annual growth rate (CAGR) of 38.0% over the 2018-2022 forecast period.

Also according to IDC, global spending on AI systems will be led by the retail industry where companies will invest $5.9 billion this year on solutions such as automated customer service agents and expert shopping advisors & product recommendations. Banking will be the second largest industry with $5.6 billion going toward AI-enabled solutions including automated threat intelligence & prevention systems and fraud analysis & investigation systems. Discrete manufacturing, healthcare providers, and process manufacturing will complete the top 5 industries for AI systems spending this year. The industries that will experience the fastest growth in AI systems spending over the 2018-2022 forecast are federal/central government (44.3% CAGR), personal and consumer services (43.3% CAGR), and education (42.9% CAGR).

“Significant worldwide artificial intelligence systems spend can now be seen within every industry as AI initiatives continue to optimize operations, transform the customer experience, and create new products and services”, said Marianne Daquila, research manager, Customer Insights & Analysis at IDC. “This is evidenced by use cases, such as intelligent process automation, expert shopping advisors & product recommendations, and pharmaceutical research and discovery exceeding the average five-year compound annual growth of 38%. The continued advancement of AI-related technologies will drive double-digit year-over-year spend into the next decade.”

The AI use cases that will see the most investment this year are automated customer service agents ($4.5 billion worldwide), sales process recommendation and automation ($2.7 billion), and automated threat intelligence and prevention systems ($2.7 billion). Five other use cases will see spending levels greater than $2 billion in 2019: automated preventative maintenance, diagnosis and treatment systems, fraud analysis and investigation, intelligent process automation, and program advisors and recommendation systems.

Companies around the world are cashing in on the boom.  Solganick & Co. can evaluate potential mergers & acquisitions for your business. Our experienced team of investment bankers can assist your company in selecting the right M&A transaction for your shareholders.

See a recent M&A transaction we completed in this sector:

Inspirata has acquired Artificial Intelligence in Medicine

Insipirata acquires AIM

See our latest research reports on Artificial Intelligence:

Solganick Co Artificial Intelligence MnA Update H1 2018

Artificial Intelligence M&A and Funding Report for Q2 2017

For more information regarding an M&A transaction within the Artificial Intelligence sector, please contact us.