The relentless drive to digital transformation among tech and non-tech companies pushed mergers and acquisitions to record levels over the past year, the latest analysis finds. Now, artificial intelligence and machine learning loom as the next wave of hot targets for companies seeking new market leverage. EY, which tracks M&A activity quarter-by-quarter and year-by-year, puts aggregate 2016 deal value at $466.6 billion, exceeding 2015 levels by two percent -- and establishing the highest level ever recorded. However, the actual volume of M&A deals has colled somewhat, to 3,076 deals, a five-percent decline. At the core of this deal-making frenzy is interest in the Internet of Things (IoT), in which deal value tripled to $103.4 billion through 2016.