“There are many obstacles to the GP and LP relationship, but several can be avoided by working with the right platform and portal technology. Get the platform right, and you can get things like the data right. And if you get the data right, other areas, such as regulation, can become far easier to accommodate and capitalize on.” – Liam McHugh, Managing Director, European Fund Administration, CSC

Where We Were

Until recently, artificial intelligence was regarded as a marginal tool in private equity. Adoption was limited, often confined to back-office support functions. Reporting cycles followed a predictable rhythm of quarterly updates, with data processed manually by analysts and distributed through spreadsheets or static portals. LPs accepted these lags as part of the industry norm, while GPs built operating models around human review and judgment. Technology was a supporting element, but rarely a driver of change.

Where We Are

The GPs

The pace of adoption has accelerated. AI is no longer a side experiment for most managers — it has become a strategic focus across accounting, portfolio management, and reporting. Many GPs now see it as essential to staying competitive, with benefits already being realized or expected in the near term.

• Only 18 percent of GPs are not using AI
• 65 percent rank AI as a top strategic priority
• 87 percent of those using AI report benefits or expect them soon

The LPs

LP expectations are rising as they demand more timely, detailed, and reliable reporting. Technology is increasingly central to their evaluation of GPs, with frustration often stemming from outdated systems or a lack of clarity in communication and data delivery.

• 74 percent of LPs expect on-demand access to key fund data
• 72 percent seek operational SLAs such as NAV deadlines
• 44 percent say they do not receive sufficient detailed performance reporting, including investment-level data
• 35 percent cite investor portal technology as their biggest frustration when working with GPs
• 27 percent cite timely and accurate communication as a frustration
• 11 percent cite data granularity as a frustration

Obstacles

Despite enthusiasm, implementation is uneven. GPs cite accuracy of outputs (73 percent), privacy and trust (66 percent), and security risks (52 percent) as leading concerns. LPs highlight similar reservations, with cost and the need for human oversight adding further complexity. There is also a knowledge gap: more than a third of LPs say they need a clearer understanding of how AI fits into existing workflows before they can adopt it with confidence. Hiring and retaining skilled professionals is another widespread challenge, with 39 percent of GPs ranking it as their top concern over the next three years. The competition for experienced talent is particularly intense in fund management, compliance, and administration roles.

Where We're Going

What is clear is that AI is moving from the periphery to the core of private equity operations. The technology is not yet a replacement for human expertise, but it is becoming an embedded layer across the investment lifecycle — shaping origination, diligence, and portfolio oversight. Over time, the standard will shift from periodic reporting to continuous, decision-ready data. For GPs, this transition requires more than technology investment alone. Success will depend on choosing an AI platform that incorporates governance, clear processes, and the ability to balance automation with human judgment. Those that integrate AI decisively and at scale will be better positioned to meet LP expectations, demonstrate transparency, and compete effectively in a market that is becoming more immediate and data-driven.

Summary

AI is becoming part of the foundation of private equity, with adoption now expected by LPs and prioritized by GPs.