How AI is Transforming Business and Investment Institutions Like Never Before

Investment institutions around the globe are becoming more reliant on a number of novel approaches to find an edge over the competition. Artificial Intelligence (AI) stands out among these, promising to revolutionize the way Private Equity (PE) firms operate and manage their portfolios.

For ambitious players such as Apollo Global Management and CVC Capital Partners, AI isn’t merely a tool for back-office operations, but rather a transformative technology that enhances everything from procurement optimization to customer service and content creation. Incorporating AI in their services allows these firms to drive efficiency and foster rapid business growth.

Apollo has taken a systematic approach to AI adoption. Rather than focusing on one-off efficiency gains, the firm is integrating AI into core operational areas such as procurement, legal, and content creation. This strategic move offers scalable value creation. For instance, Apollo uses AI-based analytics to detect discrepancies in procurement costs across the portfolio, allowing the firm to negotiate better deals.

Another key application of AI is in content creation. A notable instance is Cengage, an Italian digital education firm in Apollo’s portfolio, where AI is used to create textbooks quickly and more cost-effectively than human writers. However, the goal is not to replace humans completely but to integrate AI systems with human workflows.

In another example, Paris-based fund manager Eurazeo aims to transform the operating models of its portfolio companies entirely instead of merely deploying one-off AI tools. Domitille Doat-Le Bigot, Eurazeo’s chief digital and information officer argues that without a broader rethink of operational models, the application of AI may remain limited and ultimately nontransformative.

These examples demonstrate the transformative potential of AI when applied systematically and strategically. As the technology becomes more accessible, the impact on PE firms and other sectors of the industry promises to be profound.