AI Acquisitions Rise in IT Services M&A Activity
Despite these challenges, the global deal volume saw an 11% increase from 2024, indicating a resurgence in M&A activities on a broader scale. AI acquisitions gained significant traction in IT services M&A activity during the fourth quarter of 2025, with 10 AI-related deals contributing to a total of 494 transactions for the year. These factors contributed to cautious progress in M&A activities throughout 2025.
In recent developments within the IT services sector, AI acquisitions have gained significant traction in the mergers and acquisitions (M&A) landscape. The fourth quarter of 2025 marked the first meaningful AI transactions, setting a precedent for future activities in this domain. Despite the surge in AI-related deals, the overall deal volume remained steady throughout the year.
Trends in AI Mergers and Acquisitions
The fourth quarter of 2025 witnessed a notable increase in M&A transactions, with 10 AI-related deals taking place. This contributed to a total of 494 IT services M&A transactions for the year, reflecting an increase in activity compared to pre-pandemic levels. However, despite the growing interest in AI acquisitions, the volume of these deals is not expected to change significantly in the near future. The primary reason is the limited number of AI companies available for acquisition, causing these transactions to act more as gap-fillers rather than major drivers of M&A activity.
Looking forward, 2025 has been identified as a transitional year, with expectations for more AI acquisitions in 2026. The overall M&A value increased in 2025, with megadeals playing a crucial role in driving this activity. This resulted in the second-highest deal value in the past decade.
Economic and Regulatory Influences
Economic uncertainty and regulatory scrutiny have influenced M&A strategies, prompting big companies to opt for less risky deals. These factors contributed to cautious progress in M&A activities throughout 2025. Regulatory scrutiny, in particular, has been a significant consideration for megadeals, which often attract more attention from regulators.
Despite these challenges, the global deal volume saw an 11% increase from 2024, indicating a resurgence in M&A activities on a broader scale. Additionally, U.S. executive orders have altered global trade flows, leading companies to pursue more domestic acquisitions.
The Role of AI in M&A Processes
AI has played a central role in enhancing the efficiency of M&A processes, transforming every phase of execution. AI technologies have accelerated due diligence and sourcing, making these processes more efficient and effective. Predictive models have been instrumental in identifying potential acquisition targets, while AI automation has streamlined due diligence processes, reducing the median diligence time to 160 days.
Moreover, predictive analytics have improved valuation and forecasting, providing companies with better insights into the potential outcomes of their M&A activities. The impact of AI on M&A in 2025 was clear, as it facilitated faster and more accurate decision-making, ultimately enhancing deal efficiency and valuations.
Future Outlook for AI in M&A
As the landscape of M&A continues to evolve, the role of AI is expected to become even more pronounced. The transitional nature of 2025 sets the stage for increased AI-related M&A activities in 2026. Companies are likely to continue leveraging AI technologies to gain a competitive edge in identifying and executing successful deals.
While the number of AI companies available for acquisition remains limited, their strategic importance in filling gaps and enhancing overall M&A strategies cannot be understated. As economic conditions and regulatory environments continue to shift, the adaptability offered by AI technologies will be crucial in navigating these challenges and capitalizing on opportunities within the M&A sphere.
“The rise of AI in M&A is not just a trend; it's a transformation that's redefining how deals are strategized and executed.”