Jeffrey Klein and Anil Kumar Quoted in FundFire on Generative AI in Private Equity
Blackstone, Carlyle Deploy Data Scientists to Tap Generative AI
A&M Managing Directors, Jeffrey Klein and Anil Kumar, are featured in FundFire article “Blackstone, Carlyle Deploy Data Scientists to Tap Generative AI.” Generative AI's applications in private equity have increased significantly in recent years. Blackstone, Carlyle and Blue Owl Capital have all stepped up the use of their data scientist teams, diving into the new opportunities and challenges posed by generative AI and searching for the impact of advanced AI tools, such as ChatGPT, on their own processes, portfolio companies and potential investment applications.
Generative AI’s applications in private equity can be as simple as improving a manager’s deal process, said Jeffrey Klein. “It’s about speed to value,” he said. “One of private equity’s competitive tacks is to move quickly and jump a deal and demonstrate to the seller how quickly it can move.”
Customization of AI tools is a critical way to tap the technology’s potential, said Anil Kumar. “Prompt engineering is about the way you ask questions, because you can ask in many different ways to get the right answer,” he said.
A recent Alvarez & Marsal whitepaper framed the benefits and costs in stark terms. “Private equity firms adopting generative AI quickly and integrating it into their portfolio companies’ operations can significantly boost competitiveness, while those who don’t may lag behind,” it stated.
