Tuesday, August 14

AI M&A deals surge in Q1 2018, predictive analytics on the rise

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Venture-backed AI companies have secured more than $1.9 billion investment in Q1 2018, with some of the biggest deals in robotic automation, autonomous vehicles and predictive analytics, according to a recent report from M&A advisory firm, Hampleton Partners.

AI market size is forecast to grow from $21.5 billion to $190 billion by 2025 at a CAGR of almost 37%, the advisory added.

The opportunity for artificial intelligence in business analytics is driving interest and investment in the area.

As algorithms learn and grow so does their capacity to predict and forecast. With the aid of AI, it is expected that increasingly advanced data processing and management will be observed.

Business analytics on the rise

Transaction volume in machine data analysis has sharply risen in the past year with Q1 2018 outperforming H1 2017.

“This growth is indicative of the current applicability of AI to data analysis enabled by massive datasets and readily and scalable computing power,” according to the report.

Heiko Garrelfs, sector principal and AI expert at Hampleton, said in the report that companies are starting to realize they are sitting on large volumes of data that can drive AI.

“Companies must make sure that their data pool is configured in such a way that allows the data inside to be fed into AI applications,” he wrote.

Europe going strong

European acquirers are in a strong position moving forward in the AI sector, with a rise of all European targets being acquired by intracontinental buyers from 38% in 1H 2017 to 44% 1Q 2018.

“When it comes to disruptive technologies, Europe is cultivating a complex tapestry of vibrant young companies intent on making data the material of our age,” the report said.

Source: Hampleton Partners


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