Welcome back to The Private Equity Podcast by Raw Selection! In this episode, Alex is joined by Beth Pollack, an applied AI and data strategy operating partner with over two decades of experience in building decision systems. Beth works closely with private equity firms and their portfolio companies to drive value through AI and data initiatives. She shares insights on how AI can be effectively implemented in private equity-backed companies, avoiding common mistakes and maximizing opportunities for growth.
Breakdown:
[00:00] Introduction to Beth Pollack, AI and data expert, discussing AI's role in private equity-backed companies.
[00:31] Beth shares her background, with over 20 years of experience in AI and data strategy.
[00:59] Beth highlights common mistakes in AI implementation, like starting without clear problem definition and not integrating workflows.
[01:50] The importance of aligning AI projects with business goals and involving the right people early is emphasized.
[02:49] Beth advises against using large consulting firms without AI expertise.
[03:19] She explains the need for selecting the right AI tools beyond ChatGPT.
[03:46] Breaking down problems into smaller components helps with AI efficiency.
[04:16] Beth shares her journey from data mining to building AI systems.
[05:09] A case study shows how AI increased EBITDA in a healthcare company.
[06:07] In the healthcare project, AI and machine learning were used to process medical records and improve clinical decision-making.
[07:33] AI helped the company enter new markets and improve patient outcomes by identifying conditions that human review may have missed.
[07:57] Successful AI implementation begins by identifying workflows, engaging teams, and understanding investment needs.
[08:53] Gaining leadership and team trust is crucial for effective AI strategies.
[09:50] AI projects should align with broader business goals and focus on problem-solving.
[10:46] Speed to value can be achieved by using existing tools and internal resources.
[11:42] AI is advancing rapidly, becoming more accessible and cost-effective for businesses.
[13:07] Beth discusses how the acceleration of AI innovation is impacting private equity firms.
[14:06] Large language models (LLMs) and open-source technology are helping optimize AI for businesses.
[15:23] Private equity firms should involve AI experts during the diligence process to assess investments and create value.
[16:50] AI can transform not only new investments but also portfolio companies nearing exit.
[17:11] Beth recommends staying updated by talking to practitioners and following AI publications and podcasts.
[17:41] She shares her favorite podcasts, including Lex Friedman's and "AI on AI."
[18:37] You can reach Beth Pollack on LinkedIn for further discussions on AI and data strategy.
[19:07] Closing remarks from Alex.
You can connect with Beth Pollack on LinkedIn by visiting her profile here.
To be added to the book waitlist, you can email alex.offer@raw-selection.com
Thank you for tuning in!
To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.
Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to alex.rawlings@raw-selection.com
The Private Equity Podcast, by Raw Selection