Williams Lea's Mike Raposa warns that operational risks in private equity's buy-and-build model have grown more acute as GPs seek artificial intelligence implementation across portfolios. Traditional approaches face new challenges as PE firms attempt to layer advanced technology onto their portfolio companies.

A quarter of senior PE decision-makers identified data quality and accuracy as critical under-tooled areas across their portfolio companies, according to a Williams Lea survey. This data inconsistency threatens to undermine potential AI benefits, creating significant hurdles for firms seeking technological advantages.

The survey reveals a fundamental tension between PE firms' AI ambitions and operational capabilities. Portfolio companies lack the consistent data infrastructure needed to support advanced analytics, forcing GPs to address these foundational issues before realizing AI's promised operational efficiencies.