Whilst some LPs believe AI could enhance private markets careers, nearly all continue to value human judgment for investments
AI is rapidly transforming industries, and the private markets sector is no exception. GPs are increasingly integrating AI capabilities into investment processes, portfolio management and talent development.
While 44% of LPs believe that AI adoption by GPs will enhance the career trajectory of analysts starting today, more than a third of LPs took the contrary position and believe AI will actually hinder career development.
Perhaps unsurprisingly, while some LPs expressed optimism about AI’s role in career development, the vast majority value human judgment highly and are far less enthusiastic about granting AI a seat at the GP Investment Committee table—an overwhelming 90% voted decisively against the idea.
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Artificial Intelligence is transforming industries everywhere and private markets are no...
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Artificial Intelligence is transforming industries everywhere and private markets are no exception.
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In our latest Barometer report, we asked LPs how they see AI shaping careers and investment decisions.
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We found that nearly half believe that AI adoption by GPs would enhance the career trajectory of new analysts.
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On the opposite end, more than one third of LPs disagree and see AI hindering the career development of new participants entering the industry.
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When it comes to investment decisions, human judgment still wins.
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When asked in the survey, over 90% of LPs voted against giving AI a seat on the investment committees of their GPs.
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AI is seen as a powerful tool to enhance – not replace human capability in private markets.
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It may shape careers and processes, but, for now LPs say that judgment should remain in human hands.
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For more insight, read our full Barometer report.