Category: Insights

Author: Scott Mozarsky (Managing Director, US)

At JEGI CLARITY, we have observed strong growth across the majority of subsegments of the legal sector, including litigation support; the market segment for our two latest deals, the sale of litigation support services provider First Legal to Aurora Capital Partners and the sale of Counsel Press to Align Capital Partners. The litigation subsegments of the Legal Tech and tech-enabled services market have an aggregate TAM of over $50B which includes eDiscovery, litigation support, legal research, legal practice management software and litigation workflow platforms.

The Legal Tech market’s growth is driven by technological disruption, increased access to capital and the emergence of alternative business models. These factors are creating a fertile environment for investors and expanding deal opportunities in the market.

Market Drivers

2023 marked a year of solid growth for Artificial Intelligence (AI), with Generative AI becoming more mainstream. While 2023 focused on theoretical advancements and proofs of concept, 2024 has seen the emergence of tangible AI applications and their integration into organizational operations. Although AI’s impact on the legal industry will be profound, it is still early. AI is maturing and evolving every day.

As AI adoption has increased, several companies and financial sponsors have focused on leveraging AI to differentiate tech-enabled service offerings, which in some instances is enhancing value and profit margins in what historically were commoditized markets.

AI has served as a catalyst for technological innovation in the sector. This innovation includes AI generated transcriptions for court reporting and depositions and workflow improvements relating to document automation. AI is also being used to highlight inconsistencies in testimony in real-time during hearings and depositions for attorneys to enable them to better serve their clients. Another area that is gaining momentum is law firms leveraging AI for predictive analytics relating to likelihood of winning cases and size of potential settlements and damages awards.

The alternative legal services provider market segment continues to exhibit solid consistent growth driven by increased adoption by law firms and in-house groups. Investments in legal operations, technology as well as Legal Process Outsourcing (LPO) and Business Process Outsourcing (BPO) providers have generated strong momentum over recent years.

The recent loosening of restrictions on nonlawyer ownership of law firms under Rule 5.4 in Arizona and Utah has also stimulated activity and served as a catalyst for financial sponsors to come into the market. Some financial sponsors are deploying capital into law firms through managed services organizations similar to the patterns we have seen in the medical, dental, and tax & accounting verticals.

M&A Overview

Despite a choppy M&A market in 2023, the legal market was highly active for tech-enabled services deals, particularly in litigation support. Notable deals included the sale of JEGI CLARITY-advised Counsel Press to Align Capital Partners with the shared vision of building a diversified litigation support platform, as well as Gridiron Capital acquiring Esquire Deposition Solutions, Veritext acquiring Litigation Services and GCP Capital Partners acquiring KCC. Other legal market tech-enabled services sub-segments were also quite active including legal process outsourcing led by Consilio’s acquisition of Lawyers On Demand, and business process outsourcing led by Renovus Capital continuing to create a market-leading global platform at Harbor Global.

Legal software market deal activity was less consistent in 2023. That said, several marquee businesses were acquired at strong valuations including, among others, Casetext, Fastcase, Aosphere, Elite, Litify and Cipher. While the broader software market has not come back to the same consistent levels of activity and high valuations that we saw in 2021, quality businesses in the legal market are trading for strong valuation multiples.

We anticipate this trend to continue into 2024 and beyond.

2024 has seen multiple subsectors experiencing heightened M&A activity including litigation support, claims administration, alternative dispute resolution, legal process outsourcing, eDiscovery, and IP management. A consistent theme in the deals that have closed and the other deals in market is a focus on leveraging technology and AI in particular to drive better results and efficiencies.

We are anticipating a significant rebound in M&A activity for the Marketing Services sector as we enter the back half of 2024. Supported by our recent Digital Services market studies in Europe and North America, where we interviewed executive leaders at global independent digital services companies, as well as recent signs of broad recovery in global M&A activity.

Transaction activity in Q2 2024 shows an 11% increase from Q1. In Q2 2024, 424 transactions were completed globally, up from 383 in Q1 2024. This rise is particularly significant as Q1 marked the eighth consecutive quarter of decline from a peak of 617 transactions in Q1 2022.

*Source: Pitchbook Financial Database

Within the Marketing Services sector specifically, our recent engagements and pitches indicate robust activity for Q4 2024, with the potential to return to recent peak volumes in the first half of 2025. This optimism is shared by many in the industry, reflecting a broader sentiment of recovery.

Factors driving this positive trend include the following:

• Decline in inflation and interest rates: Declining inflation and the anticipation of interest rate reductions are primary influences, which in turn are easing debt markets and facilitating transaction activity.
• Recovery of marketing budgets: Marketing budgets are bouncing back faster and being deployed more rapidly, improving visibility, and leading to the majority of agency CEOs interviewed anticipating stronger performance in the second half of 2024.
• Backlog of companies seeking an exit: Several Private Equity-backed Digital Services platforms are eyeing an exit after delays of up to 24 months, with many waiting for three to four quarters of robust growth as a trigger to launch a process.
• Olympics and U.S. Presidential Election:  Notable spending attached to the Summer Olympics and anticipated windfall of political budgets will create additional momentum.
• Operational efficiencies beginning to be felt with AI:  The adaptation of AI as an efficiency tool across disparate operational functions from Enterprise to SMB businesses are beginning to be realized.

As we navigate this dynamic landscape, the groundwork is being laid for sustained recovery in Global Marketing Services M&A activity, reflecting renewed business confidence and economic stability.  

If you would like to speak to us about this topic or the broader market, please contact us.

 

Director, Patricia Vicente, recently attended the Mergermarket Private Equity and M&A Forum in Madrid, Spain. An annual event that gathers stakeholders across the Iberian M&A and Private Equity market to hear industry leaders participate in interactive panel discussions, and network with others in the dealmaking community. Here are her key reflections from the event:

General Market Conditions

Although 2023 was a challenging year, the Spanish economy has shown some resilience, attracting substantial international interest including in the Tech space.  However, many transactions took longer to close and were harder to execute, due to increased due diligence requirements and the introduction of more complex earnouts to bridge valuation gaps.

Private equity activity was impacted by general market conditions.  Yet, there were some significant transactions that took place including JEGI CLARITY advising on the Bridgepoint investment in Samy Alliance, that accelerated the company’s growth as a social-first integrated digital marketing company.

As those at the event concluded, there has been a positive shift in sentiment recently, with the Technology, Media and Telecommunications (TMT) market buoyant in the first half of the year. Internet, Software and IT services ranked as the second most active sector based on the number of transactions in the first month of this year. 

There is optimism after the European Central Bank (ECB) reduced interest rates, from 4% to 3.75%, fostering a positive market outlook.  Combined with transactions such as Cinven’s sale of agritech company Planasa to Germany’s EW Group, with a reported valuation of around EUR 900m, there are clear signals of market momentum.

Source: Mergermarket

Healthy Pipelines

Key plenaries and stakeholders agreed that transaction pipelines appear robust, with the expectations that the valuation gap will narrow. Despite last year’s challenges, high quality assets that traded last year held their value well.

Future activity will require innovation

Attendees acknowledged that future activity would require innovation and flexibility from buyers, with bidders utilizing alternative finance tools and seeking ways to cover liability where the seller is not willing to assume it. Debt is also making a comeback, including more diverse funding sources and creative solutions. There was also optimism about a resurgence in initial public offering (IPOs).

If you would like to speak to us about the Iberian or EMEA markets, please contact Patricia Vicente directly.

 

While the digital services industry faced challenges in 2023, there are signs for recovery and growth in 2024, with a focus on building integrated capabilities, leveraging AI, and driving scale via M&A.

JEGI CLARITY and CIL have conducted a comprehensive survey of leading independent businesses in the European digital services market to understand their outlook for 2024 and what opportunities they see for the year ahead.

The survey focused on three areas:

• Market conditions: how demand for services has changed in 2023 and likely areas for growth in 2024.
• Industry trends: how margin dynamics have impacted group structures and which trends are having the greatest impact.
• M&A outlook: which areas are going to be the focus for investment and what
  is the outlook for M&A.

If you would like an in depth discussion on this topic please contact us. 

Recent breakthroughs, such as the advent of Generative AI tools herald a new era set to rival the impact that personal computers, the internet, and smartphones had on our lives.

This wave of innovation has the potential to propel industries forward at a pace, promising to revolutionize the way businesses operate. Tasks, once mundane, are being automated, insights are generated with greater precision, and decision-making is reaching new heights of sophistication. At the same time, AI is opening up fresh avenues of growth, sparking product and service innovations, redefining value propositions and driving operational efficiencies.

One fundamental theme, something that has been consistent across all of our research, remains the importance of the human touch. As the story unfolds, AI’s true power lies in its ability to complement and enhance human capabilities, accelerating progress and efficiency, and delivering higher quality end products and experiences. Firms are actively harnessing AI and related capabilities fueling a surge in M&A activity, as they strive to gain an edge in an increasingly digital economy.

Our report is designed to identify key themes arising from AI developments and their subsequent impact on businesses and M&A
across the following sectors:

We look forward to continuing the conversation as the story unfolds. In the meantime, if you have any queries or would like to have an in depth discussion on this topic or the broader market contact us. 

JEGI CLARITY’s 20th Annual Media & Technology Conference in New York City brought together senior executives and investors from across the global media, marketing, information, and technology sectors.

At the conference, Philipp Mueller, Chief Analyst & Product Officer of Outsell moderated a panel titled, “Value Creation with AI – Productivity vs. Growth.” 

The panel featured Sejal Amin, Chief Technology Officer of Shutterstock, Nikesh Kalra, Chief Operating Officer of DeepMedia, and Ilya Meyzin, SVP, Head of Data Science at Dun & Bradstreet.

The discussion kicked off with Philipp reminding the audience that ChatGPT was only launched 15 months ago. While there has been time to understand what real value creation with AI can look like, achieving it still remains elusive for a lot of companies. He continued by sharing findings from a survey conducted by Outsell in Q3 2023 that revealed that over 80% of senior executives were experimenting with Gen AI, with a third feeling very confident that it would drive productivity improvements in their enterprises. However, nearly half of the respondents lacked confidence in the ROI of their AI investments, with only 10% anticipating revenue and growth.

The Impact of Generative AI on Productivity

Gen AI’s impact on productivity was the first area of discussion with the panelists.

Sejal Amin elaborated on Shutterstock’s utilization of Gen AI to enhance productivity across their operations by improving customer experience through actionable insights to their customer and sales teams, optimizing developer workflows, and bolstering infrastructure security.

Ilya Meyzin, added that Dun & Bradstreet had been employing LLMS for several years (large language models) to improve data quality, ingest data, and generate new types of insights.

The Issue of Trust and Safety with Gen AI

As Gen AI adoption increases, concerns regarding trust and safety become more acute.

Nikesh Kalra from DeepMedia discussed AI’s role in helping trust & safety teams combat nefarious content, which he quoted is now a $20bn market. 

Adopting Gen AI solutions from the third quarter of last year, Ilya from Dun & Bradstreet, emphasized the importance of addressing biases and hallucinations in AI, implementing rigorous data governance practices, and most importantly, using trusted and validated data.

Shutterstock has been using AI well before Gen AI became the norm, explained Sejal, to understand the users and meet their needs through personalized search, recommendation engines and content discovery tools. With the growth of AI usage within their business, they had increased their trust and ethics practices.

Nikesh Kalra reminded the audience that generated content was not just gathered from social media, but also from Zoom calls and across other platforms. With even the larger news and information services now turning to user generated content from sources like TikTok, he spoke about a move towards greater investment in the authentication of the data supply chain.

Licensing and Growth resulting from Generative AI

The conversation shifted to the potential to drive revenue and growth through Gen AI.

Dun & Bradstreet is navigating the delicate balance between licensing proprietary data and protecting market competitiveness, carefully weighing the revenue upside with strategic threats. Meanwhile, Shutterstock capitalized on its immense repository of assets through partnerships with Gen AI hyperscalers, resulting in their first deal with OpenAI in 2022. Sejal Amin, however, noted a shift in demand towards tailoring smaller data sets for more conversive models.

What’s in store for Generative AI in 2024? 

Finally, the panelists speculated on what the biggest development in AI would be in 2024.

For Nikesh Kalra it was the weaponizing of AI during the perfect storm of global elections, virality of social media, and the adoption of AI on a massive scale. Both Ilya Meyzin and Sejal Amin envisioned that the “rubber will hit the road” on Gen AI with worldwide enterprise adoption of it. Ilya also highlighted that in 2024 the emphasis on guardrails – LLM safety controls and protocols – will become increasingly important.

In conclusion, the discussion emphasized the potential of Gen AI to drive value, productivity, and growth, alongside the imperative of addressing the challenges of risk and governance for all.

For more information about our conference please click here.

JEGI CLARITY’s 20th Annual Media & Technology Conference in New York City brought together senior executives and investors from across the global media, marketing, information, and technology sectors.

The Conference finished on a high with a captivating session featuring Wilma Jordan, Founder and CEO, North America of JEGI CLARITY, in conversation with Duncan Painter, Chief Executive Officer of Flywheel, in a session titled, Flywheel: The Global Vision for E-commerce.

Stellar track record of build and sell

Wilma began by introducing Duncan, highlighting his stellar track record of building and selling businesses with achievements including a $848m deal for WGSN with private equity Apax Partners and the sale of Flywheel Digital to Omnicom for $835m. Duncan shared insights from his career, from founding consumer intelligence provider ClarityBlue, to navigating the challenges of transforming Emap from a company with zero market value through an IPO, generating a 1.5x return.

Omnicom’s purchase of Flywheel

Transitioning to Duncan’s current role within Omnicom, the conversation turned towards retail marketplaces as a pivotable force shaping the digital landscape, and the impact they will have on the consumer orientated purchase industry. Duncan highlighted the seismic changes looming and cited John Wren, Omnicom’s Group CEO, for his foresight in positioning the organization at the forefront of change with the purchase of Flywheel.

Future of E-commerce

The discussion naturally progressed to Duncan’s perspectives on the evolving landscape of e-commerce and the future of retail.

Duncan emphasized the dynamic nature of retail markets, comparing them to the stock market. He highlighted that the role of first party data is one part of the change but emphasized that the most significant element will be the provision, for the first time ever, of direct-to-consumer capabilities at mass scale with a real time view of trading across all environments. He quoted staggering statistics demonstrating Flywheel’s influence across global marketplaces with ownership of 50% of the top consumer packaged goods (CPG), 6,000 clients that use their platforms across 29 countries globally.

He continued by explaining that when they started to build Flywheel in 2015, they realized that they had to be inside the walled gardens of the marketplaces, building and leveraging capability for their brands. This approach not only allows the manufacturer to meet, and sell to their customers directly, but to know how every single US$ spent performs, allowing for pure retail optimization.

The future of bricks and mortar retail

With this retail trajectory, Duncan predicted that there will still be physical stores in 20-30 years, however they will be transformed into warehouses for collection rather than for customer facing retail space. With online retail sales expected to meet 40% of market share by next year and grow to 60-70% in the next five years, Duncan stressed the importance of a digital first approach, particularly as Generation Alpha had already reached 97% digital engagement.

The role of humans in future retail

Wilma inquired about the impact of digital retail on the retail workforce in the next 10 years with Duncan explaining a shift towards a more dynamic approach, where retailers would need to be “hedge fund managers rather than portfolio managers”. He explained that last year 70% of net growth on marketplaces within Amazon in the US came from direct brands from China trading directly, selling to the US population. He warned that Western retailers need to rethink their sales strategies to remain competitive against East Asian retailers whose P&Ls don’t include high salaried product, sales, and marketing directors, and therefore having the ability to invest in optimizing their products on retail marketplaces.

The rise of retail media

With the retail media market growing 100% year on year, even before optimization is realized, Duncan believed it will become the largest retail platform, boasting unparalleled attribution capabilities, “for the first time ever attribution is pure.” He underscored its transformative potential in advertising effectiveness and revenue generation, particularly evident in Amazon’s revenue streams.

For more information about our conference please click here.

A view on North America by Wilma Jordan

Secondly, given the challenging M&A market over the last 12 months, many U.S. private equity firms have portfolio companies that have exceeded their optimal holding period. In other terms, companies lingering in private equity portfolios for more than 5 years will need to be sold, as the time value of money diminishes with each passing year and pressure grows from LPs to return funds.

Lastly, assuming that the Fed is on track to start lowering interest rates in 2024, the cost of capital will decline with these reduced rates and the markets are currently pricing in a reduction of 50 – 100bps. We expect this to motivate buyers to adopt a more assertive approach in acquisitions as well as give sellers the confidence they need to take their companies to market at attractive values.

The US economy has remained stronger than many European economies, and US strategic buyers remain focused on acquiring growth both domestically and internationally. We predict that European based private equity owned companies will increasingly look to the US for buyers and investors, both as tuck-ins to existing platforms or as potential platforms in their own right.

All these dynamics will make for a more stable M&A environment that will engender confidence for buyers and sellers.

A view on the UK by Richard Vaughan

This macro-sentiment reflects what we are hearing from companies across our sectors – 2023 was hard work for the majority and really a question of managing through, 2024 is about a return to growth.

From an M&A perspective we are seeing a growing pipeline of opportunities which should come to market during the year, across both private equity and founder owned businesses. Pitch activity was higher in Q4 than at any other point last year albeit in terms of timing, it feels like most businesses will be waiting to see how 2023 closed out, and what visibility looks like on 2024 before they push the button on going to market. Everyone is aware that 2024 won’t be 2021, the bar is higher and hence every transaction will get an increased level of scrutiny from buyers and investors alike, so vendors and their advisors will be keen to ensure that all boxes are ticked – financial, commercial, and strategic – in advance of engaging in a process.

Despite the challenges of the last 12 to 18 months, the UK digital economy and ecosystem is as strong and vital as ever – continuing to grow, innovate and evolve at an exciting pace and constantly creating new ideas and opportunities, which in turn should make for a return of a vibrant M&A market in due course.

A view on Private Equity by Marcus Anselm

On the sell-side, buy-out groups globally have a record $2.8tn in unsold investments, and GPs are under increasing pressure to start returning a flow of capital to LPs, not least in the context of a tough fundraising environment. Funds need to find a way to start exiting old investments over 2024 and they will likely become more creative about how they do this where needed. We are increasingly hearing more about private equity funds being open to structured transactions including deferred components and reinvestments to get deals closed in a way that they would not have contemplated in 2021.

On the buy-side, while everyone has talked about dry-powder for years now, it remains incredibly relevant. European private equity firms are sitting on a record €350bn of cash reserves, and although some of this can and has been deployed into existing companies or through continuation funds, ultimately both LPs and GPs need to see this being invested into new platforms. The broader economic and M&A environment should help achieve this in 2024 – inflation has dropped sharply across the region, interest rates are expected to fall through 2024, recessionary concerns are easing at an IC level and buyer-seller pricing expectations are beginning to align.

Of course, timing on this is hard to call but we would hope that these factors will drive markedly higher private equity related M&A by the end of Q2.

A view on Venture Capital by San Datta

Looking forward, it feels like 2024 is going to be a year of re-alignment.

From an operational perspective, a lot of the really hard work has been delivered so companies are better aligned for the current environment. That may not mean a return to the 2021 and 2022 growth rates, but it does mean much more achievable, capital efficient and sustainable growth through 2024 albeit at a slightly slower pace.

From an M&A perspective, we definitely expect an uptick in M&A across the VC market over 2024 for several reasons. Firstly, we are already seeing much closer alignment around pricing between buyers and sellers, and we expect that alignment to get closer over the coming months. Secondly, strategics are back at the table, particularly in North America, as public market tech valuations have continued to strengthen in recent months. And lastly, many founder and VC backed companies are now looking at being part of a larger strategic in a more positive way than they would have done a couple of years ago – there are potentially huge synergy opportunities for independent businesses with the right larger partner, and an increasing number of independents are keen to explore these.

If you have any queries or would like to have an in depth discussion on this article or the broader market please Contact us.

Authors: Jonathan Davis (Partner, EMEA), Kevin Moore (Managing Director, US), Daniel Hart (Vice President, EMEA)

In the ever-evolving landscape of technology, Artificial Intelligence (AI) has emerged as a transformative force, revolutionizing various industries. One of the most notable areas where AI is making a significant impact is software development. With the potential to enhance efficiency, elevate quality and drive innovation, AI is reshaping the way software is conceived, created, and deployed.

Key industry players are recognizing the immense potential of AI and are investing heavily to harness its capabilities.

Investment in AI by Industry Giants

The race to harness AI’s potential in software development is on and industry giants are leading the way. Accenture, a global consulting and professional services company, has unveiled plans to double its workforce of data and AI experts from 40,000 to 80,000. This expansion is backed by a $3 billion investment into its AI capabilities.

Infosys, a multinational corporation that provides IT services and consulting, has introduced Infosys Topaz, an AI-first suite of services, solutions, and platforms. By leveraging generative AI technologies, Topaz aims to transform the landscape of software development. Not to be left behind, Wipro has made a substantial $1 billion investment in digital transformation. Launching an AI-first innovation ecosystem, Wipro has set its sights on training 250,000 employees in AI.

These investments underscore the industry’s recognition of AI’s potential and the commitment to staying at the forefront of technological advancement.

Key themes that are reshaping the industry

Automating tasks for enhanced productivity – AI is taking over the mundane and repetitive tasks that have long been a part of software development. The process of code generation, testing and deployment can now be automated, allowing developers to focus on more creative and strategic endeavors. Not only does this streamline the development process, but it also translates to reduced costs, improved software quality with fewer bugs and enhanced security. This will result in faster delivery times and more efficient allocation of resources.

Elevating software quality with AI – Buggy software can lead to disastrous outcomes, both in terms of user experience and reputation. AI has the capability to identify and rectify bugs, ensuring a higher quality end product. Moreover, AI can make recommendations for better coding practices, optimizing the software’s performance.

This not only reduces the risk of software failures but also enhances the user experience. The lowered barriers for new developers to enter the market will also benefit small and medium-sized enterprises (SMEs), expanding opportunities for growth and further democratizing the use of AI in software development.

Personalized user experience through AI – Gone are the days of one-size-fits-all software. AI empowers developers to personalize software for individual users. By analyzing vast data sets, including user preferences and behaviors, AI can recommend features, functionalities and even tailor the user interface. This results in an improved user experience and leveled playing field to deliver bespoke software solutions.

Predictive insights for informed development – AI’s predictive capabilities are invaluable for software developers. By analyzing trends and forecasting future developments, developers can incorporate AI assisted predictive logic into code to help make informed decisions and plan ahead. This not only enhances the return on investment but also mitigates the risk of obsolescence. Software projects can adapt and evolve in tandem with technological shifts, ensuring long-term relevance.

Multimodal methods: bridging the gap – The industry is witnessing a shift toward multimodal technologies that enable software development based on visual representations like drawings or wireframe blueprints, rather than solely relying on text and language-based interfaces. This innovation, with an increasing assist from AI tools, opens new doors for less technically skilled teams, fostering greater collaboration between various stages of development. The barriers between various development teams are being dismantled, leading to agile, streamlined processes from inception to the final product.

AI’s Co-Pilot role: enhancing human creativity

Amid the advancements of AI in software development, a central theme remains: AI is not here to replace human developers, but rather to augment their capabilities. Think of AI, like OpenAI’s ChatGPT, Amazon Q or Github CoPilot, as a coding AI assistant. It aids in generating boilerplate code, offering new ideas and automating routine tasks.

It is essential to note that the human touch is indispensable in understanding how to leverage AI’s insights and adapt them creatively to specific projects. As well as monitor for errors and prevent rogue code from being released.

The relationship between AI and human developers ensures that technology serves as a tool for innovation rather than a substitute for human expertise.

A glimpse into the future

As AI continues to evolve and redefine the landscape of software development, we stand at the brink of a new era. With investments pouring in from industry leaders like Accenture, Infosys, and Wipro, as well as every major enterprise software company, the potential for AI to revolutionize software development is unparalleled.

From automating tasks and elevating software quality to personalizing user experiences and enabling predictive insights, AI is ushering in a new wave of efficiency, creativity, and innovation. Developers are not being replaced by machines; rather, they are collaborating with AI to push the boundaries of what is possible. As we move forward, the harmony between human intellect and AI prowess promises to reshape the world of software as we know it.

We look forward to continuing the conversation as the AI-story unfolds. If you have any queries or would like to have an in depth discussion on this topic or the broader market please Contact us. Our next AI article delves into the world of Technology & Consulting Services.

Authors: San Datta (Partner, EMEA) & Kathleen Thomas (Managing Director, US)

The last year has seen the Events industry bounce back faster than anyone expected. The face-to face (F2F) industry, be it exhibitions, conferences, peer-to-peer or experiential has seen a surge in growth with events participants having a renewed appreciation of the value of F2F engagement in driving sales, networking, learning and collaboration.

While the fundamental allure of in-person interactions remains unchanged, the rise of Artificial Intelligence (AI) is enabling a new era of enhanced experiences, efficient operations, and innovations within the industry.

The reasons that people attend events is unlikely to dramatically change due to AI advancements. AI technology is finding its stride in augmenting these connections, providing scope to deliver more innovative, cost effective, efficient, and tailored experiences.

AI-Powered Trends

Lead generation and qualification

A key part of AI’s potential impact on the events sector lies on its prowess in real-time crunching of huge amounts of data. The ability to aggregate and analyze diverse proprietary data sets (e.g. feedback, registrations, interactions, sales patterns) with third party unstructured data (e.g. social media activity and engagement) will allow rapid qualification, identification and prioritization of leads for exhibitors in advance and on the day to ultimately drive higher levels of engagement and conversion.  

Efficiencies through automation

The challenges of event planning – from registration and ticketing to speaker management and content production – are now prime candidates for AI-powered automation. Chatbots are emerging as versatile assistants, addressing attendee inquiries, processing payments, and distributing tickets. This automation will not only accelerate tasks but could free up event staff to focus on value-added endeavors. Eventex, for example, has already incorporated ChatGPT into its event management platform. Behind the scenes, event logistics are becoming more streamlined by AI tools that manage speaker availability, venue capacities and attendee preferences – helping organizers be more efficient.

Innovative and tailored event experiences

AI can also create new, innovative event experiences. While Generative AI based chatbots can drive efficiencies, they can also act as virtual concierges at events, providing attendees with instant and tailored guidance. Social media monitoring becomes a powerful tool to gauge attendee sentiment in real time, which could enable rapid interventions and elevate the overall event atmosphere. Facial recognition technology is being deployed to read attendee emotions, providing a new source of real-time data that paints a vivid picture of overall feeling, albeit at the risk of invading the privacy of attendees. All of these and more can potentially be combined with data based on footfall, visitor flow, content engagement, conference attendance and more. All of this data can then be used to optimize event dynamics on the fly.

Similarly, the advent of virtual and augmented reality offers novel opportunities for hybrid events that engage both on-site and remote participants. Through real-time translation of speeches and transcripts, audiences can be extended worldwide while on the ground, participants can be engaged more actively and creatively.

AI in set design testing becomes an agile playground for organizers, who can experiment with various layouts and ideas in a low-cost, nimble fashion. This innovation will help to precisely curate F2F experiences that cater to attendees’ needs and preferences.

Conclusion

Utilizing cutting-edge data analytics, seamless automation, and new innovations, AI is reshaping the landscape of events, transcending them beyond conventional gatherings. Participants can take part in captivating and tailored experiences, while event organizers have an opportunity to benefit from enhanced efficiencies and the invaluable insights that support an ongoing process of improvement.

Despite the continued integration of AI, the bedrock of success for any event remains rooted in authentic human connections, rendering the industry more robust against AI disruption.

As event organizers continue to amass operational efficiencies and AI technologies enhance the value proposition for attendees, the sector remains an attractive area to explore from an investment perspective.

We look forward to continuing the conversation as the AI-story unfolds. If you have any queries or would like to have an in depth discussion on this topic or the broader market please Contact us. Our next AI article delves into the world of Software Development.