All Things DSO: AI Agents and M&A Outlook
Artificial intelligence is rapidly reshaping the dental industry, and few understand its implications better than Brian Colao, director of the Dykema DSO Industry Group. During the All Things DSO webinar in July 2025, Colao shared his perspectives on AI adoption, regulatory challenges, and the shifting dynamics of mergers and acquisitions (M&A) in the dental support organization (DSO) space.
The Rise in AI-Powered Agents
One of the newest innovations is the rise of AI-powered “agents,” virtual assistants capable of handling patient calls and administrative tasks. “They don’t like the term ‘bots,’” Colao said. “These agents are quite sophisticated. They can take phone calls and interact with people and handle most situations.”
While initially skeptical, Colao acknowledged their growing effectiveness. “I was the last holdout, but now I’ll take a call with an agent.”
AI and HIPAA Compliance
AI is also being used to enhance training and patient consultations. Some DSOs are leveraging AI to analyze recorded consultations and provide feedback on communication effectiveness. Colao emphasized the importance of compliance: “You’ve got to be HIPAA compliant … there are regulatory hoops you must jump through.”
AI and Predictive Analytics
Looking ahead, Colao sees predictive analytics as the next frontier. “It’s in development, but it’s just about ready, and I think it’s going to be a game changer,” he said. These tools could help forecast patient outcomes or predict appointment no-shows, enabling practices to optimize scheduling and patient care delivery.
Dental M&A Market Remains Stagnant
On the dental M&A front, Colao described a market still in drought. “Since mid-2022, about forty-two significant transactions have been abandoned, and only seven have closed,” he said. High interest rates and increased buyer caution are major contributors.
Colao said investors are spending a lot more time on due diligence. “Things that would have been looked past in 2019 are now being heavily scrutinized.”
Insurance Carrier DSO Acquisition
He also addressed the recent acquisition of Cherry Tree Dental, a dental group with over thirty locations, by the dental insurance company Delta Dental of Wisconsin.
Both the American Dental Association (ADA) and the Wisconsin Dental Association raised concerns. The ADA released a statement that this acquisition raises deep concerns about potential conflict of interest.
“Patients may find their treatment options limited to what is most cost-effective for the insurer, not necessarily what is most effective for their oral health,” responded ADA.
Brian Colao said it’s too early to know the ramifications. “There’s no regulation on this yet, but if this trend continues, we’re going to need rules that define what a conflict of interest really is.”
What’s Next for DSOs: Stay Informed, Stay Ahead
Colao is hosting Dykema’s Twelfth Annual DSO Conference on August 6–8, 2025. “We’re going to break our own attendance record,” he said. “We’ve got new speakers, great content, and incredible entertainment.” Planet DDS will be interviewing leaders for The Dental Economist Show podcast from the exhibit floor.
What to learn more about how Planet DDS dental software solutions can help your organization achieve sustainable growth? Contact us today.
