Beyond the AI Buzz: Why Private Equity Can’t Afford to Wait
Most Private Equity (PE) firms are still approaching AI with caution—stuck in analysis or distracted by hype around tools like ChatGPT or LLMs—while overlooking AI’s true potential: unlocking scalable, tailored, and high-value solutions across their portfolio companies. This article argues that AI is more than a new technology—it’s a complete shift in how businesses build, own, and deploy software. Instead of the traditional “buy vs. build” debate, forward-thinking firms are embracing a hybrid approach using modular AI components to rapidly build custom solutions. The payoff? Lower costs, faster time to value, full IP ownership, and leaner teams delivering exponential results.
Through real-world examples from SparkWise Solutions, the article showcases how AI-first strategies have helped PE-backed firms achieve dramatic results—like a $36M efficiency gain from RFP automation, a $32M revenue uplift in automotive sales, and a doubling of win rates in B2B. The key message: AI isn’t about choosing the flashiest model—it’s about embedding AI deeply and practically into the business to drive real outcomes. PE firms that focus on implementation over speculation will secure a strong competitive edge across their portfolios.
