Jeffrey Klein and Anil Kumar Quoted in AltAssets on Generative AI in Private Equity
AI and private equity – where do we go from here?
A&M Managing Directors, Jeffrey Klein and Anil Kumar, are featured in AltAssets article “AI and private equity – where do we go from here?.”
A plethora of ways are emerging for how private equity firms can tap into AI, the zeitgeist ever since the third version of ChatGPT started bowling over users last November.
Origination, deal assessment, the due diligence process, looking for patterns within large data sets, searching for hidden risk factors – areas some PE and VC firms have previously skirted with through machine learning have gained new traction within the industry, amid the increasing power of modern AI software.
If LPs start adopting some of the data analytics tools more widely, it could place demands on GPs for more comprehensive data that LPs can use within their own processes.
“The requests that we are getting from private equity right now are spot specific tasks like: how many of our French contracts have this clause?,” said Jeffrey Klein, a managing director of Alvarez & Marsal’s Private Equity Performance Improvement group and leader of the Software, Technology & Services Group.
“It will transform the tasks that a workforce is doing. Generative AI is a good collection and sorting tool, so it can move people to do next generation tasks,” he explained.
“This is where the tech is actually quite powerful right now, especially the GPT new language models. With AI, employees will start collecting the dots rather than creating the dots,” added Anil Kumar, a managing director in Alvarez & Marsal’s Private Equity Services Group.
