AI is driving a revolution in Private Equity: with the potential to analyze large amounts of unstructured data for patterns and insights, there are clear opportunities for firms to review their investment decisions and compliance efforts.

In Data Is Changing the Face of Value Generation and Compliance in PE, an article for Private Equity Law Report, Christian Davis at JMAN Group, highlights the scale of the change:

“PwC has estimated that assets managed by algorithm-driven and AI-enabled digital platforms will surge to almost $6 trillion over the next three years, which is nearly double the figure recorded in 2022. That aligns with Deloitte’s prediction that 25% of PE firms will be using AI to augment their portfolio valuations over the next five to seven years.”

PE firms must make use of this technology to remain competitive; the full article is essential reading for the PE industry as it covers how AI impacts the following topics:

• Data-driven decision making for better investments
• Enhanced portfolio company management
• AI-powered compliance and risk mitigation ️
• Strategies for overcoming data challenges