Artificial intelligence and Tech’s increasing role in PE
June 17, 2024
Technology and more particularly Artificial intelligence has started playing a very critical role in private equity fund life cycle starting from deal due diligence to value creation till exit process.
Most of the PE firms are trying to tap AI’s potential to stay ahead in market by grabbing great deals, optimising their repititive processes, reducing costs and taking more informed decisions. In addition, many existing and upcoming private market tech solutions for valuation, value creation and data operations processes have started incorporating AI element to provide an edge over other solutions. There are thousands of tech solutions available in market and it gets very difficult for GPs/LPs to identify a good fit. One should properly identify their firm specific pain points before marrying with a solution and blindly going with market leaders as it does involve lots of efforts (time and money) in setting up a system across the firm, and gets painful in transitioning everything from one system to another.