Private equity firms are increasingly using artificial intelligence to automate workflows and manage fund data. But as AI spending grows, limited partners are asking what they’re actually getting in return.
For LPs, the value is less about having the latest AI tools and more about faster access to information, clearer performance data and better answers. That disconnect is growing between managers and investors, according to a new Gen II Fund Services and Harris Poll survey.
The study found that 88% of general partners believe they are ahead of competitors in digital transformation. Only 71% of LPs agree.
The gap is particularly notable as AI becomes a bigger part of private equity’s technology spending. Fifty-three percent of GPs said they prioritize AI over other technology tools and frameworks, compared with 42% of LPs. Sixteen percent of GPs went further, calling AI the "only relevant factor" in technological differentiation, versus just 3% of LPs.
The findings suggest private equity’s AI arms race may be outpacing investor expectations.
