Generative AI is rapidly moving from a technological novelty to a key part of the manager due diligence toolkit. So much so that it is now reshaping the ways in which LPs assess GP capabilities, through the likes of interrogable AI-powered data rooms and automated analytics. Indeed, every LP surveyed by Edelman Smithfield for its 2026 Global Institutional Limited Partner Survey on Private Capital reported using generative AI tools, with more than a quarter (29 percent) of the LPs surveyed doing so to evaluate GPs' investment strategies and sources of differentiation.

AI is well on its way to reshaping how LPs evaluate PE funds, but as the technology becomes increasingly widespread, it's data quality and human judgment that are emerging as key factors. While AI adoption is universal among surveyed LPs, the research indicates that superior data quality and experienced human oversight remain critical differentiators in the evaluation process.