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Operators drive AI edge in private equity

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Russ Roenick, co‑founder and managing partner of Transom Capital Group, warns that AI is not a one‑time deployment. New capabilities surface continuously, vendors upgrade at speed and use cases broaden, forcing higher execution standards. In private‑equity circles, the technology has moved from curiosity to a core value‑creation lever, requiring senior leadership to champion adoption across business units.

Across the industry, firms are testing tools, hosting demos and running pilots, while probing portfolio companies on where the technology can cut costs or boost productivity. Most private equity shops have already run at least one experiment, treating AI as a testable asset rather than a speculative purchase. The push reflects pressure to extract measurable gains from digital transformation to prove ROI quickly.

Roenick concludes that the AI edge will be built by operators who can integrate evolving models into day‑to‑day decision making, not by vendors selling static solutions. Firms that embed continuous learning loops into their portfolio management are likely to capture superior returns as AI matures. Operators who act now will own the competitive advantage as competitors race to embed similar capabilities today.