NEPC’s Joshua Beers recently wrote an article for Financial Planning that discusses artificial intelligence and the impact it’s having on the private equity space. View the article on FinancialPlanning’s site here.
The private equity AI gold rush is on, with PE and venture capital firms pouring more than $10 billion into the artificial intelligence and machine learning sector in the first half of 2023 alone, according to S&P Global Market Intelligence.
Ultrahigh net worth individuals, families and family offices are playing a key role in this story. These investors place a large portion of their wealth in private equity, providing a significant share of the assets that are funding AI’s development. In some notable cases, family offices are making a direct play on AI — for example, the Duquesne family office recently invested nearly half a billion dollars in AI-focused companies.
It’s easy to see the appeal of AI technologies and the desire to capitalize on them — it is reasonable to expect companies that successfully integrate AI into their business processes to be better positioned for future success. Likewise, firms that create superior AI platforms today will become essential partners for virtually all global businesses. For this reason, a huge number of new ventures in the private equity environment include at least some aspect of AI technology.
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