AI Momentum Is Accelerating for Private Equity

Artificial intelligence no longer is a peripheral experiment for midmarket organizations – it’s becoming a core lever for growth and efficiency. Our latest polling results* of approximately 200 private equity leaders show that 2026 will mark a decisive turning point: a year when companies move from testing AI in pockets to integrating it across their operations.

From curiosity to commitment

When asked how AI investment will change in 2026, nearly half (47%) of respondents said they plan to increase spending, with 37% expecting significantly more and another 10% naming AI as a top strategic priority. Only 14% anticipate spending less.

This shift reflects a recognition that the era of tinkering is over. Organizations that spent 2025 exploring AI’s potential are now preparing to scale implementation across functions. For many, this is not simply about staying current – it’s about staying competitive. The sharp uptick in spending signals that leaders see AI as a growth enabler and an operational necessity.

At Crowe, we view this as a signal that midmarket companies are moving from the early adopters of 2025 into more mainline adoption. The focus is now on value realization, integration, and measurable outcomes – turning experiments into enterprise-grade impact.

A capability gap to close

Even as investment grows, one finding stands out: Most professionals still feel undertrained. Only 24% rate themselves as “intermediate” AI users – comfortable using AI tools in their daily routine – and just a small fraction report having “advanced” skills. In contrast, 59% describe themselves as beginners or having no real AI experience.

This imbalance highlights a critical challenge: AI adoption has outpaced workforce readiness. Tools are proliferating faster than organizations can train their people to use them effectively. Yet there’s good news here too – companies that have launched focused AI upskilling programs are seeing high employee satisfaction and early productivity gains.

In 2026, expect a major pivot toward structured, role-based training. Organizations that treat AI literacy as a core competency – embedding it in onboarding, performance goals, and leadership development – will unlock far more value from their technology investments. As one executive polled put it, “AI doesn’t replace people; it rewards the people who know how to use it.”

Moving beyond pilots

The poll data shows that 41% of midmarket companies are currently in an “exploration” stage – testing tools like Microsoft™ Copilot and OpenAI’s ChatGPT – while 17% have moved into formal pilots across teams or departments. Only 15% have reached full adoption, where AI is considered an “expected tool” for daily work. Another 27% remain largely on the sidelines.

These figures reveal an important inflection point: The AI adoption curve is steepening, and the window for first-mover advantage is narrowing. By the end of 2026, we expect substantive adoption to rise sharply as organizations move from isolated pilots to more broad enterprise application.

The strategic question is shifting from “Should we use AI?” to “How do we scale AI responsibly and effectively?” The leaders will be those who balance ambition with governance and deploy AI ethically, transparently, and in alignment with business objectives.

Barriers are multifaceted

When asked about the biggest barriers to adoption, the most cited specific hurdles were lack of skills (22%), leadership understanding (16%), and high implementation costs (9%). Ethical concerns (5%) and lack of fit (6%) were less frequently cited, suggesting that the conversation has matured – leaders no longer question whether AI should be used but rather how to use it effectively. More telling, 42% of respondents selected “all of the above,” underscoring that challenges are multifaceted.

The takeaway: While barriers remain, mindsets are shifting. Executives increasingly acknowledge that there will be no future in business without AI. It’s becoming a permanent “digital co-worker layer,” a ubiquitous tool embedded in how jobs are performed. Over time, AI will fade into the background of work – an invisible but indispensable productivity engine.

The era of applied intelligence

Looking ahead, 2026 is shaping up to be the year when AI moves from potential to practice. Investment is rising, pilots are maturing, and organizations are learning that people – not platforms – ultimately determine success.

Crowe believes the next phase of AI maturity will reward companies that act with confidence, train their people with intent, and build responsibly. The midmarket’s inherent agility offers a powerful advantage in this transformation.

AI no longer is the future of work – it’s the fabric of how work gets done. And for those who lead with foresight and discipline, 2026 will be remembered as the year they turned experimentation into transformation.

* Survey results from Crowe ExPErtise Series: AI Use Cases in PE, October 2025.

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