Will AI transform alternatives?

The concept of artificial intelligence (AI) has intrigued people for centuries, but in 2023 it became real to millions. Incubated by decades of research and funded by the world’s wealthiest technology firms, artificial intelligence is suddenly on everyone’s lips. 

Many hedge funds already have a track record with AI. Private equity firms are later arrivals, but they have a distinct opportunity to amplify the capabilities of this new technology by buying early adopters of AI and transferring their skills and capabilities across their portfolios. Private credit firms are increasingly recognising AI as a valuable tool to screen investment opportunities, streamline due diligence processes, enhance portfolio management, and optimise exit strategies.