To what extent are PE firms embracing AI technologies today?
“Venture capitalists are gradually opening up to the adoption of AI, and that is down to the promise of more efficient and data-driven decision-making processes. However, significant challenges need to be addressed, including access to data scientists and engineers, as well as building and maintaining the necessary data infrastructure.”
Maxime Bonelli
“We are certainly hearing about some of the larger LPs looking into the potential of AI, but we are hearing less from mainstream GPs. Whether that is because there is inherent scepticism in the buyout community, or because it is simply too early, and GPs will only talk to us when they have something positive to report, I’m not sure.”
Merrick McKay
“AI technologies haven’t been widely adopted by PE firms. However, we are using them to process and analyse large amounts of information, such as the data we receive on thousands of companies when we look at potential secondaries deals. AI is a powerful tool that can help find signals in the data that can be crucial to predicting future outcomes. Yet it rarely has access to all pertinent information, so it needs to be paired with other information, such as intelligence gathered by the deal team.”
Joshua Lowe
“I think the PE industry is ahead of mainstream corporates in trying to figure out what AI could mean, but it is still way behind the pace of change that AI is enabling. There is experimentation going on in different parts of firms, but I don’t think the technology is yet being embraced institutionally. The VC community, however, is generally more tech-savvy than the buyout space, and so adoption has been quicker there.”
Anne Glover