M&A in Artificial Intelligence | Q1 2023

Artificial intelligence has been a buzzing term for quite some time now. The sentiment continued as we entered the first quarter of 2023, with the M&A market recording strong activity in AI. Although the number of AI technology deals slid from 200 in Q1 2022 to 186 in Q1 2023, the total deal value in Q1 2023 was US$12.7 billion compared with US$4.6 billion in Q1 2022.

AI funding fell 43% QoQ to US$5.4 billion in 2023, the lowest quarterly total since Q1 2018. Meanwhile, deals slid for the fourth quarter in a row to 554, the lowest tally since Q4 2017. AI unicorn births remained stagnant at five compared with that in the previous quarter. However, AI advancements are expected to benefit investors across a diverse range of technical and creative fields. Several technology companies have developed AI-powered chatbots and increased collaborations and partnerships to integrate and bolster AI capabilities. Going forward, tech giants are expected to actively undertake M&A activities in the AI space.