Article

No talent, no transformation: the hard truth in PE’s AI push

Heather Barnes 11 Jun 2025

As executive search partners, we’ve seen firsthand how private equity is at a crossroads. The sector’s traditional strengths of deep networks, financial rigor, and operational expertise are now being pushed further by the power of data and AI. These aren’t just tools to cut costs; they’re fast becoming competitive weapons in deal origination, portfolio performance, and exit strategy.

But here’s the catch: you can have all the algorithms in the world, but if you can’t attract, retain, and integrate the right talent, those investments won’t deliver.

Where data and AI matter most

Smarter sourcing: AI is turning deal origination from reactive to proactive, spotting signals before intermediaries even get involved.

Sharper diligence: algorithms now compress timelines and uncover risks traditional methods might miss.

Operational edge: AI is already boosting pricing, forecasting, and supply chains-at the heart of value creation.

Exit impact: real-time dashboards and predictive insights make exits smarter and faster.

The talent bottleneck

We’re talking daily to PE leaders wrestling with the same challenge: where to find the talent that can make data and AI real. It’s not just about data scientists – it’s about people who understand how to apply these tools to the nuances of private equity.

Key hurdles

A shortage of hybrid leaders who understand both PE and data science.

Misalignment between investment teams and data teams, slowing real adoption.

Big Tech and consultancies often winning the race for these leaders – offering better packages and faster career tracks.

Even when firms do hire senior digital leaders, they’re often buried in structures that don’t give them real influence.

And too often, firms overlook the potential to grow this talent from within by upskilling those who already understand the sector.

What PE leaders can do

Reframe the pitch: show data and AI leaders how central they are to value creation – link their roles directly to deal teams and the partnership.

Redesign roles: make sure digital leaders have a direct line to decision-makers, not just a seat at the project table.

Selective senior hires: work with trusted search partners to find those rare hybrid profiles – people who can bridge tech and deal teams.

Grow your own: invest in existing team members who are curious and digitally minded -it’s a long-term bet that pays off.

The bottom line

Data and AI are no longer optional – they’re now core to how PE firms generate alpha and manage risk. But the real differentiator isn’t just technology-it’s the people who bring it to life.

For leaders today, this isn’t a side project. It’s a strategic priority-because talent will decide who leads in the decade ahead.

Heather Barnes

Heather is a Partner in our global Technology and Digital practice, leading on senior technology, digital and data officer roles across the consumer, technology, life sciences, energy, and industrials space. A strong advocate of diversity, equality and inclusion, Heather has…

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