Private Equity AI adoption

Extracted Attributes

• Primary Driver

  SaaS industry slowdown

• Broader Context

  Industry 4.0

• Brazil's IoT Plan

  National Internet of Things Plan

• Brazil's AI Strategy

  Brazilian Artificial Intelligence Strategy (EBIA)

• Competitive Landscape

  AI arms race

• Key Benefits of Adoption

  Optimizing deals, enhancing portfolio performance, improving efficiency, accuracy, decision-making, reducing risks, creating value

• Brazil's Digital Strategy

  Brazilian Digital Transformation Strategy (e-Digital)

• AI Adoption Rate (Q4 2024)

  82% of PE/VC firms

• Key Challenges to Adoption

  System integration, data and output quality, privacy and cybersecurity

• Corporate Functions Benefiting

  AI coding, business process automation, data analysis, customer engagement/experience, content generation, sales and marketing, supply chain and logistics, digital strategy

• AI Adoption Rate (Previous Year)

  47% of PE/VC firms

• Leading Countries in AI Adoption

  China, United States

Timeline

• Pictet Alternative Advisors began a survey of private equity general partners on AI adoption, concluding in November 2024. (Source: web_search_results)

  2024-10-01

• Pictet Alternative Advisors concluded a survey of private equity general partners on AI adoption, which began in October 2024. (Source: web_search_results)

  2024-11-30

• By Q4 2024, 82% of private equity and venture capital firms were actively using AI, a significant increase from 47% the previous year. (Source: web_search_results)

  2024-12-31

• Expected to be a pivotal year for generative AI adoption in private equity, with more firms implementing AI and recognizing its potential ROI. (Source: web_search_results)

  2025

Artificial intelligence and industry 4.0 in Brazil

The concept of industry 4.0 has multiple characteristics, one of which is its connection to artificial intelligence, which represents an innovative and transformative force, enabling Brazilian industries to increase productivity and competitiveness. Despite significant initiatives in this field, Brazil still has significant gaps compared to leading nations such as China and the United States. The Fourth Industrial Revolution, commonly referred to as Industry 4.0, represents a transformation in industrial processes, characterized by the widespread integration of digital technologies in manufacturing, production, and logistics. Indeed, Industry 4.0 encompasses the presence of several modern technologies that are transforming its reality, including the technical integration of cyber-physical systems (CPS) and the widespread use of the Internet of Things (IoT). This shift in the face of industry enables the development of high-quality products, increased flexibility, and robust production. Among the main enabling technologies of Industry 4.0 are artificial intelligence (AI), machine learning, cloud computing, big data analytics, and augmented reality. For Brazil, an emerging economy, the adoption of Industry 4.0 and AI represents a significant opportunity to open new markets, boost innovation, and increase productivity. However, the country faces considerable challenges in its technological development, raising concerns about its ability to keep pace with the ongoing industrial revolution and fully capitalize on the potential benefits enjoyed by other countries that have invested more and more extensively than Brazil. Understanding this scenario, the Brazilian government has initiated several programs, including the Brazilian Artificial Intelligence Strategy (EBIA), the Brazilian Digital Transformation Strategy (e-Digital), and the National Internet of Things Plan, all designed to guide government actions toward fostering the development and adoption of AI.

Web Search Results

• AI use cases in private equity: Optimizing deals and investments

  According to our survey, 50% of private equity professionals identified system integration as the biggest hurdle to AI adoption. Firms must adopt a phased implementation strategy, testing AI solutions on smaller processes before scaling them organization-wide. Building partnerships with AI service providers can also bridge internal talent gaps, ensuring smoother implementation and faster results​​. [...] By addressing these challenges, private equity organizations can build a robust foundation for AI adoption, enabling them to extract value across every stage of the investment process. A thoughtful approach to implementation ensures that AI becomes a strategic enabler, driving long-term success. "AI-powered tools assess the security posture of portfolio companies by scanning their networks for vulnerabilities." [...] From predicting market trends to identifying new deal opportunities, AI tools are reshaping the way organizations operate. This article explores key AI use cases in private equity, providing insight into how companies can leverage AI to stay competitive while managing risks efficiently. The adoption of AI is transforming how private equity entities operate across multiple phases and use cases: Key takeaways

• 5 Applications of AI in Venture Capital and Private Equity - V7 Labs

  AI adoption has been rapid, with recent survey data showing that 82% of PE/VC firms were actively using AI in Q4 2024, marking a dramatic increase from 47% the previous year. AI has transformed from "nice-to-have" to a critical component of competitive strategy. [...] The financial sector’s enthusiasm for AI reflects the demands of a data-intensive, knowledge-driven industry that depends on accuracy, speed, and strategic insights. The adoption of AI in private equity and venture capital firms presents a fascinating paradox. While junior professionals quietly embrace AI tools for daily tasks, senior partners often maintain a measured skepticism—creating what industry insiders call a "shadow AI" phenomenon. [...] By adopting these technologies, especially the latest LLM and RAG solutions, private equity and venture capital firms are addressing long-standing inefficiencies in their workflows. Manual processes like document analysis and data extraction can now be orchestrated with multiple LLM models chained together and automated through AI workflows.

• How AI is Revolutionizing Private Equity? - Haptiq

  Firms leveraging AI for private equity can stay ahead in a competitive market, where speed, accuracy, and foresight are critical. Whether it’s refining deal sourcing or enhancing portfolio performance, the adoption of AI in private equity reflects a fundamental evolution toward data-centric strategies, ensuring firms thrive in a dynamic landscape. What is AI in Private Equity? --------------------------------- [...] is undergoing a seismic shift, driven by the integration of private equity artificial intelligence. With the rapid advancement of technology, PE firms are transforming their decision-making processes, portfolio management strategies, and overall investment operations. AI is increasingly becoming a game-changer in an industry that has traditionally relied on human expertise, intuition, and historical data. [...] By incorporating artificial intelligence private equity, firms enhance their ability to analyze vast datasets, optimize operations, uncover new opportunities, reduce risks, and improve efficiency. This article delves into the pivotal role of AI in private equity, exploring how it reshapes the industry through data-driven decisions, predictive analytics, portfolio management, and future innovations, with Haptiq’s Pantheon: AI & Data Science amplifying these strategies.

• AI adoption in private equity: insights and challenges - Pictet

  In order of ranking, the corporate functions that PE GPs see benefiting most from the adoption of AI are: AI coding; business process automation, such as improving efficiency of software, and data analysis (equal); customer engagement/experience; content generation, editing and translating; sales and marketing, supply chain and logistics, and digital strategy (equal); and, finally legal. None cited AI as being among the most beneficial to cybersecurity or human resources. [...] Figure 1 - Hurdling Expected barriers to adoption of AI, range 1=none to 10=critical, average response Image 7: ©Photography by Luca Locatelli Source: Pictet Alternative Advisors, Pictet Asset Management. Survey of private equity general partners conducted by Pictet Alternative Advisors between October and November 2024. 22 PE funds surveyed, response rate for individual questions ranges from 14 to 16. [...] Overall, they see data and output quality as the biggest barrier to adopting AI, with privacy and cybersecurity issues also posing significant challenges. They are least concerned about finding staff with the skills to implement AI systems or the cost of adopting AI. Privacy “is a subject that companies care about a lot, while unsolved this will be a barrier. Though for many use cases there are solutions that entirely eliminate this as a barrier,” noted one PE GP.

• 10 AI Use Cases for Private Equity in 2025 - BlueFlame AI

  Although AI adoption in financial services lags behind most other industries, it's important for private equity firms to embrace AI technologies to remain competitive. Moving forward with AI not only prepares firms for success in 2025 but also lays the groundwork for continued growth and innovation in the future. BlueFlame eBook for AI Implementation Success ------------------------------------------------- [...] 10 AI Use Cases for Private Equity in 2025 ========================================== Experts from Bain & Company, Apax Partners, and Anthropic share 10 valuable AI use cases for PE firms. Image 1 Image 2 Raj Bakhru BlueFlame AI 2025 is shaping up to be a pivotal year for generative AI (Gen AI) adoption in private equity (PE), as more firms implement AIand recognize the potential ROI of AI. [...] AI is set to change the private equity industry in 2025 by improving efficiency, accuracy, and decision-making. The use cases in this post show how AI can be applied in various areas, such as simplifying due diligence, enhancing portfolio performance, and improving investor relations and talent management. By using AI, private equity firms can gain a significant advantage, allowing them to make better investment decisions, reduce risks, and create more value.