Operate to Transform with AI
Accelerating private equity digital transformation with managed services
Sequencing the process cuts costs, reduces risk, and makes technology progress self-funding
Break the modernization paradox
- Building AI in private equity (PE) companies and portfolios can add value, but overcoming the cost curve takes specialized experience.
- Do-it-yourself transformation calls on skills a PE organization may not possess.
- It’s difficult to recast a technology stack and perform business as usual at the same time.
- Financial engineering, creative engagement, and phased implementation promote quick wins.
Technology transformation in real life is challenging. What’s the solution?
Private equity organizations want their portfolio holdings ready to compete. Today that calls for agentic AI and other technology capabilities that include power innovation, service, efficiency, and resiliency. But private equity digital transformation also requires capital, effort, and specialized skills. Implementing new capabilities should be balanced against the value they are meant to create.
Change the cadence
Tackling transformation across the business can lock in the timing between risk and reward. Altering the plan may unlock the timing—and allow early proceeds to fund ongoing investments on a rolling basis. This sequenced approach offers the possibility of flattening the spending curve, reducing up-front outlays, and making the overall transformation self-funding.
Collaborate to compete
Buy, improve, sell: It’s the core formula of private equity, and turning to experienced service providers is a familiar part of the process. Technology transformation is no different. AI and other advanced functions in private equity grow stronger during a managed services period, then transfer back to in-house management and control with an enhanced ability to contribute to downstream business objectives.
Operate to Transform
Delivering transformation at scale is a balance of many moving parts. Deloitte has experience in the varied disciplines that make this phased, managed approach effective: not only technology and M&A but also tax, finance, and change management. Instead of letting the paradox of costly AI transformation hold back progress, private equity organizations may now adopt a self-funding path that can reduce risk and speed outcomes.
Sateesh Gokhale
