Browsing by Author "Mueller, Moritz Maximilian"
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- Portfolio company value creation : when private equity deploys AIPublication . Mueller, Moritz Maximilian; Rajsingh, PeterThis study concerns the role of artificial intelligence (AI) in private equity (PE portfolio companies) for developing and implementing efficiencies. Triangulating findings from current scholarship, expert interviews, and a consumer survey, our investigation revealed that AI is perceived as a significant disruptor, with the potential to transform PE operations and create value for portfolio companies. The research highlighted several advantages of AI initiatives for PE portfolio companies, including strategic guidance and providing critical resources and management alignment. Furthermore, the survey demonstrated that consumers are receptive to AI applications in PE. However, the paper also identified limitations which could potentially hinder successful adoption of AI in portfolio companies. The efficacy of PE AI initiatives was found to be contingent upon the specific circumstances of each portfolio company, with benefits likely to be minimal or not present for AI-native firms. Thus, while certain challenges persist, our findings underscore the importance of PE funds focusing on developing core AI competencies to harness AI efficiencies across their portfolio companies.