Emergence, a New York-based frontier AI company founded by three former IBM Research scientists, has launched Emergence India Labs in Bengaluru. The lab will focus on developing autonomous AI agents for advanced manufacturing and industrial automation. The company plans to invest tens of millions of dollars initially and scale to approximately 500 research scientists and engineers over three to four years. Siddhartha Gadgil, a professor at the Indian Institute of Science, will join as chief scientist whilst retaining his academic affiliation. The lab's platform uses an orchestrator that generates and coordinates multiple AI agents for enterprise workflows with minimal human input. It addresses safety concerns through formal verification methods, using mathematical proof assistants like Lean to guarantee agent behaviour in high-stakes industrial settings.

Luma Acquires Tonic | MedEvolve Announces Acquisition by Emergence | MRO Acquires Clinetic. Check out today's featured companies who have recently completed an M&A deal, and be sure to check out the full list of past healthcare IT M&A. Luma Acquires Tonic, Taking on Healthcare Bottlenecks for Over 1,000 Health Systems and 100 Million Patients Luma Health today announced that it has acquired Tonic Health from R1. Tonic Health is a leading provider in dynamic intake, e-consents, and patient-reported outcomes. The acquisition advances Luma's mission to automate busywork, reduce staff friction, and make it simpler for patients to access care with its AI-native platform, and demonstrates Luma's commitment to serving health systems using Oracle Health EHRs. Today, Luma serves more than 1/3 of people in the United States, as well as patients in the United Kingdom, Canada, and the Caribbean. The acquisition expands Luma's reach to more than 1,000 health systems - including more than 15 of the United States' leading academic medical centers - and 100 million patients currently served. Luma acquired Tonic as part of a year of rapid growth, including recognition as one of INC's 5,000 Fastest-Growing Private Companies for the second time, record ARR for the fifth straight year, expansion to Canada, the United Kingdom, and the Caribbean, and deployment of AI across its suite of products supporting patient readiness. Since its founding in 2010, Tonic has established a significant footprint serving healthcare organizations using Oracle Health EHRs. Together, the combined team will innovate to help health systems across the US and beyond address some of their most persistent operational challenges - particularly leading up to and following patient visits. "Major health systems rely on both Luma and Tonic to cut out manual coordination between staff and patients and get patients ready for care," said Aditya Bansod, Co-Founder and CTO at Luma. "We've long admired Tonic's focus on EHR and partner integration, designing products that work for patients and healthcare providers, and making patient intake and follow-up simpler, and we're thrilled to welcome them to Luma. Together, we dramatically reduce the effort to successfully coordinate care, freeing short-staffed teams from manual tracking and follow-up so our customers' resources go farther." Healthcare organizations face an urgent need for more staff capacity to coordinate patients' care, and that need can't be solved with the budget and resources available... MedEvolve Announces Acquisition by Emergence to Accelerate AI-Driven Revenue Cycle Transformation MedEvolve, Inc., a pioneer in AI-powered revenue cycle automation and analytics, today announced its acquisition by Emergence, an enterprise backed by The Pritzker Organization. The strategic transaction combines MedEvolve's Effective Intelligence platform - which integrates workflow automation, analytics, benchmarks, and generative AI - with Emergence's long-term orientation and deep software expertise. MedEvolve's technology captures millions of workflow actions across the revenue cycle, creating a proprietary dataset combined with advanced algorithms that power a new generation of industry benchmarks. These benchmarks give leaders real-time visibility into workforce performance, process breakdowns, and technology gaps. "Coming out of management consulting in 2006, I saw the opportunity to develop software, specifically workflow automation and analytics, that could drive accountability and measurable performance across the complex revenue cycle," said Matt Seefeld, CEO at MedEvolve. "Nearly twenty years later, that vision is more urgent than ever as healthcare organizations fight to maintain financial solvency. With Emergence behind us, we will accelerate development of new AI capabilities to help healthcare organizations meet our new benchmarks, expand operational capacity across the revenue cycle, and reclaim margin lost to administrative waste so they can focus on delivering exceptional clinical care to their communities." Healthcare providers are facing unprecedented financial pressure as costs rise, patient responsibility increases, and payers deploy AI to deny claims - all while uncompensated care continues to climb... MRO Accelerates Clinical Research Innovation with the Acquisition of Clinetic MRO announces the acquisition of Clinetic, a leading recruitment management platform designed to help healthcare organizations and life sciences companies find, screen, and enroll patients for clinical trials with greater speed and precision. The addition of Clinetic's AI-driven software and expertise marks another step forward in MRO's commitment to being the single source for smarter data - merging progressive technology and deep clinical expertise to advance patient care and healthcare innovation. "Partnering with more than 2,000 hospitals and health systems, we have seen first-hand the challenges facing hospitals that want to bring clinical studies to their patient population, but lack the resources, technology, or expertise to complete the process," said Lidia Bernik, President of Curation Solutions. "By adding Clinetic to our existing platform, we can start delivering a 'human-in-the-loop' solution at scale. This will translate to more efficient research at our sites and higher success for clinical research sponsors on a national level." Clinetic's software integrates directly with provider electronic health record (EHR) systems by installing secure, behind-the-firewall connectors. This enables direct access to comprehensive historical and clinical data needed to meet the unique requirements of each clinical trial protocol. By tapping into this real-time data layer, research teams can efficiently identify eligible patients across a wide range of therapeutic areas, build more precise cohorts, and plan studies with greater confidence. "Clinetic has strong roots in healthcare, already evaluating the data of more than 15 million patients across the US," said Tom Kaminski, Clinetic CEO...

Join our daily and weekly newsletters for the latest updates and exclusive content on industry-leading AI coverage. Learn More. Patronus AI launched a new monitoring platform today that automatically identifies failures in AI agent systems, targeting enterprise concerns about reliability as these applications grow more complex.The San Francisco-based AI safety startup’s new product, Percival, positions itself as the first solution capable of automatically identifying various failure patterns in AI agent systems and suggesting optimizations to address them.“Percival is the industry’s first solution that automatically detects a variety of failure patterns in agentic systems and then systematically suggests fixes and optimizations to address them,” said Anand Kannappan, CEO and co-founder of Patronus AI, in an exclusive interview with VentureBeat.AI agent reliability crisis: Why companies are losing control of autonomous systemsEnterprise adoption of AI agents—software that can independently plan and execute complex multi-step tasks—has accelerated in recent months, creating new management challenges as companies try to ensure these systems operate reliably at scale.Unlike conventional machine learning models, these agent-based systems often involve lengthy sequences of operations where errors in early stages can have significant downstream consequences.“A few weeks ago, we published a model that quantifies how likely agents can fail, and what kind of impact that might have on the brand, on customer churn and things like that,” Kannappan said. “There’s a constant compounding error probability with agents that we’re seeing.”This issue becomes particularly acute in multi-agent environments where different AI systems interact with one another, making traditional testing approaches increasingly inadequate.Episodic memory innovation: How Percival’s AI agent architecture revolutionizes error detectionPercival differentiates itself from other evaluation tools through its agent-based architecture and what the company calls “episodic memory” — the ability to learn from previous errors and adapt to specific workflows.The software can detect more than 20 different failure modes across four categories: reasoning errors, system execution errors, planning and coordination errors, and domain-specific errors.“Unlike an LLM as a judge, Percival itself is an agent and so it can keep track of all the events that have happened throughout the trajectory,” explained Darshan Deshpande, a researcher at Patronus AI. “It can correlate them and find these errors across contexts.”For enterprises, the most immediate benefit appears to be reduced debugging time. According to Patronus, early customers have reduced the time spent analyzing agent workflows from about one hour to between one and 1.5 minutes.TRAIL benchmark reveals critical gaps in AI oversight capabilitiesAlongside the product launch, Patronus is releasing a benchmark called TRAIL (Trace Reasoning and Agentic Issue Localization) to evaluate how well systems can detect issues in AI agent workflows.Research using this benchmark revealed that even sophisticated AI models struggle with effective trace analysis, with the best-performing system scoring only 11% on the benchmark.The findings underscore the challenging nature of monitoring complex AI systems and may help explain why large enterprises are investing in specialized tools for AI oversight.Enterprise AI leaders embrace Percival for mission-critical agent applicationsEarly adopters include Emergence AI, which has raised approximately $100 million in funding and is developing systems where AI agents can create and manage other agents.“Emergence’s recent breakthrough—agents creating agents—marks a pivotal moment not only in the evolution of adaptive, self-generating systems, but also in how such systems are governed and scaled responsibly,” said Satya Nitta, co-founder and CEO of Emergence AI, in a statement sent to VentureBeat.Nova, another early customer, is using the technology for a platform that helps large enterprises migrate legacy code through AI-powered SAP integrations.These customers typify the challenge Percival aims to solve