Artificial intelligence is transforming private equity, shifting from a support tool to a central driver of value creation. KPMG experts Cherie Gartner and Gavin Geminder say AI now underpins successful strategies, with portfolio companies seeing gains in revenue, decision-making and productivity.
The core opportunity lies in boosting EBITDA through cost efficiencies and revenue growth. Gartner stresses that embedding AI across operations builds sustainable competitive advantages. Geminder adds that firms must move beyond cost-cutting, using generative AI tools as indispensable parts of value creation plans.
Quantifying AI’s contribution remains a challenge. General partners must demonstrate impact by aligning performance indicators with AI-driven improvements, providing transparency for investors and supporting continuous learning.
KPMG’s AI Pulse surveys show accelerating executive commitment. Eight in ten executives see generative AI as critical for market share and competitive edge, while nearly half of CEOs now lead AI initiatives—a 34 per cent quarterly increase linked to stronger performance. This direct leadership is vital as rapid AI advances disrupt business models and force firms to reassess value creation strategies.
Private equity’s fear of missing out has shifted to a fear of irrelevance. The pace of innovation demands firms adopt AI proactively to protect investments. Experts recommend tailored AI roadmaps, internal awareness campaigns, and a mix of in-house talent and external partnerships. Gartner and Geminder expect a surge in AI hiring similar to ESG recruitment, combined with alliances with technology providers.
Governance and ethics are central. Surveys show 82 per cent of executives prioritise data quality, transparency and risk management in AI adoption. Effective frameworks foster trust with investors and customers, while clear ethical guidelines improve employee engagement and customer satisfaction, said Geminder. Cybersecurity is also a growing imperative, ensuring AI use remains safe and responsible.
Beyond governance, AI is transforming deal sourcing, due diligence and portfolio management. It accelerates discovery by analysing market data, enhances due diligence with predictive analytics and document automation, and improves portfolio oversight through real-time monitoring. Operational gains include supply chain optimisation, workforce planning and automation of repetitive tasks, freeing resources for strategic priorities.
AI presents immense opportunities but demands constant adaptation. “The risk of rapid obsolescence is real,” said Gartner. “Only firms that lead rather than lag in AI adoption will thrive.”
Created by Amplify: AI-augmented, human-curated content.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The narrative appears to be original, with no exact matches found in recent publications. The earliest known publication date of similar content is May 11, 2023, when KPMG and Microsoft announced their AI Innovation Initiative. ([prnewswire.com](https://www.prnewswire.com/news-releases/kpmg-llp-and-microsoft-establish-industry-leading-initiative-to-scale-generative-ai-across-audit-tax-and-advisory-301822666.html?utm_source=openai)) This earlier publication focuses on the partnership between KPMG and Microsoft to scale generative AI across audit, tax, and advisory services, which is related but not identical to the current narrative. The current report provides more recent insights and specific applications of AI in private equity, suggesting a higher freshness score. However, the earlier publication may have influenced the current narrative. No evidence of recycled content or clickbait republishing was found. The narrative is based on a press release, which typically warrants a high freshness score. No discrepancies in figures, dates, or quotes were identified. The report includes updated data and insights, justifying a higher freshness score. No similar content was found published more than 7 days earlier. The update may justify a higher freshness score but should still be flagged.
Quotes check
Score:
9
Notes:
The direct quotes from Cherie Gartner and Gavin Geminder in the narrative do not appear in earlier material, indicating potential originality. No identical quotes were found in previous publications. The wording of the quotes matches the current narrative, with no variations identified. No online matches were found for these quotes, suggesting they are potentially original or exclusive content.
Source reliability
Score:
10
Notes:
The narrative originates from KPMG, a reputable organisation with a strong public presence. Cherie Gartner and Gavin Geminder are verified professionals within KPMG, with established roles and profiles. Their involvement in the report adds credibility to the content.
Plausability check
Score:
9
Notes:
The claims made in the narrative are plausible and align with current industry trends. The integration of AI into private equity is a recognised development, and the statistics provided are consistent with other reputable sources. The narrative lacks supporting detail from other reputable outlets, which is a minor concern. The report includes specific factual anchors, such as names, institutions, and dates, enhancing its credibility. The language and tone are consistent with the region and topic, with no inconsistencies identified. The structure is focused and relevant, with no excessive or off-topic detail. The tone is professional and resembles typical corporate language, with no unusual drama or vagueness.
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): HIGH
Summary:
The narrative is original, with no evidence of recycled content or disinformation. The quotes are unique and the source is highly reliable. The claims are plausible and supported by specific details. Minor concerns include the lack of supporting detail from other reputable outlets and the absence of earlier coverage, but these do not significantly impact the overall assessment.
