The state of AI in private equity

• 0% of respondents said, “We have implemented a game-changing application of Al to our business.”
• 5.88% of respondents said, “Al is well adopted across the organization and in use as part of daily operations.”
• 38.24% of respondents said, “Actively piloting one or more AI applications in functional areas.”
• 55.88% of respondents said, “No formal program in place; some limited individual experimentation.”

• 0% of respondents said, “They have expertise in Al comparable to their expertise in other business areas such as finance, sales, etc.”
• 10.26% of respondents said, “They have personal experience with meaningful involvement in workplace application of Al.”
• 84.62% of respondents said, “They are aware of various Al capabilities through casual reading and some limited exploration.”
• 5.13% of respondents said, “They have misconceptions about Al that need to be actively reset.”

How meaningful do you think Al value creation might be in your company or portfolio companies?

• 0% of respondents said, “Negative: We don't expect Al to generate any meaningful value greater than cost to explore.”
• 58.82% of respondents said, “OK: We believe there will be areas of efficiency gains but are uncertain it there will be any big wins.”
• 29.41% of respondents said, “Significant: We expect several Al use cases to create significant and outsized value relative to traditional improvement levers.”
• 11.76% of respondents said, “Transformative: We think there is potential to dramatically disrupt or transform the business model at a company.”

How likely are you to move forward with meaningful Al exploration in 2024?

• 6.45% of respondents said, “No plans: Expect to wait until 2025 or later before we begin applying at companies.”
• 35.48% of respondents said, “Cautious: We might explore limited pilots where value creation or risk of inaction appears clear.”
• 48.39% of respondents said, “Progressive: We will explore Al and, based on positive results, will deploy rapidly to more use cases/portfolio companies.”
• 9.68% of respondents said, “Certain: We will set an expectation that (virtually) all companies implement Al projects in some manner.”