The Long Game w/ Elijah Murray Why Private Equity is Losing the AI Race with Ajay Srivatsavai
May 21, 2025
Ajay Srivatsavai, a veteran asset management executive with 20 years of experience, discusses why private equity is lagging in the AI race. He analyzes the complexities of technology adoption within the industry and the challenges posed by unstructured data. Ajay highlights the critical need for private equity firms to balance building versus buying technology solutions. The conversation delves into how AI can enhance investment decision-making and transform business strategies, offering insights into the future of a $15 trillion industry.
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Private Equity's AI Adoption Lag
- Private equity (PE) lags behind other asset management sectors in AI adoption due to unstructured data and less public information availability.
- PE data challenges slow AI use, but generative AI offers new opportunities to manage this unstructured information efficiently.
Balance Build vs Buy in PE Tech
- PE firms should balance building in-house tools and buying existing fintech solutions to optimize technology adoption.
- Integrate purchased tools for scalability and create custom features only when necessary to protect competitive advantages.
Focus AI on Front Office Decisions
- PE firms should focus technology efforts on front office decision-making rather than just back-office automation.
- Enhancing decision processes with AI yields higher ROI by improving portfolio evaluation and capital raising effectiveness.