We had the pleasure of speaking with Real Deals recently about how AI is starting to reshape the due diligence process in private equity. Here are a few reflections that stood out from our Co-Founder and CEO Danyal's conversation:

AI in PE has come a long way

Five years ago it was mostly macros and generic data processing tools. Today, AI is being used to pull financials, review VDRs, and flag issues, often in minutes.

Top-of-funnel is where most time gets lost

Early-stage due diligence, especially deciding whether to pursue a deal, still eats up a huge amount of time. Automating that part of the process can make a huge difference.

It's not just about speed

The real upside is better insight. AI is helping surface valuation comps, red flags, and patterns that might otherwise be missed.

Adoption is gaining serious momentum

In 2023, usage was still under 5 percent. Now, over 30 percent of the funds we've spoken with are already using AI in some way, and 60 percent expect it to become part of their daily workflows. Trust and integration are still important, but more firms are getting comfortable.

Misconceptions are still holding some teams back

There's a belief that AI replaces human judgment or that it only works for large firms. What we're actually seeing is smaller, leaner teams using it to work smarter and scale faster.

Thank you to Real Deals for the opportunity to share these thoughts, and to the other GPs featured in the piece.

You can read the full article here.