TLDR: Private equity has adopted AI faster than it has proven the returns. Roughly two-thirds of European funds now use AI in value creation, while around 8% report a material impact on earnings before interest, taxes, depreciation and amortisation (EBITDA) or exit value. The sponsors who turn AI into multiple will aim it at the operational levers that now drive most of the return, and they will start before close.
Adoption raced ahead of evidence
Within a single year, artificial intelligence (AI) moved from the margins of private equity to the centre of the value-creation conversation. In Alvarez & Marsal’s fifth annual European survey, 63% of funds now use AI as part of their value-creation activity, up from 41% the year before. Around 39% report deploying it across several portfolio-company functions and delivering measurable value.
The optimism runs wide. A separate May survey of 100 private equity executives reported by PitchBook found that 73% of executives expect AI to raise portfolio value over the next twelve months. The proof trails the enthusiasm. A modest 8% describe themselves as leading, meaning AI moves EBITDA or reshapes the exit story in a material way.
Unlock Premium
RESERVED TO MEMBERS
