The AI Edge in Private Equity: Why Proprietary Data Matters Most

Artificial intelligence is reshaping private equity—but only for firms that know how to harness it. That was the primary lesson from the With Intelligence Women’s Private Equity Summit in Phoenix on March 2-5, which West Monroe attended and spoke at.

While AI’s promise is clear, execution is the challenge. Without the right data strategy, AI is just another tool—not a competitive advantage.

Private equity firms sit on vast amounts of proprietary information, but the ability to filter, structure, and activate the right data is what sets leaders apart. Those that do will move faster, execute smarter deals, and drive superior returns. Winning in private equity won’t come from AI alone—it will come from proprietary insights that no one else has.

How does proprietary data set firms apart in AI adoption?

Private equity firms have access to vast amounts of proprietary information. But without a structured data strategy, AI tools can only go so far. 90% of the world’s data was created in the last two years, and that volume doubles every year, making it critical for firms to establish clear use cases to identify and utilize the right data.

The real value comes from integrating difficult-to-access datasets, enabling more precise deal sourcing, screening, and investor relations. Firms that take a data-driven approach are 58% more likely to exceed revenue goals than those that don’t, underscoring the advantage of AI-powered data management. Those that leverage proprietary insights effectively gain a clear edge, uncovering opportunities that others might overlook.

How can AI create a competitive edge in deal-making?

The private equity landscape is shifting. Large deals are making a comeback, but fundraising remains a challenge—with traditional vehicles seeing a multi-year decline. Meanwhile, exit activity is on the rise, with LPs increasingly focused on distributions as a key performance metric.

But differentiation won’t just come from having the right data—it will come from having the right people in place to fuel AI tools.

To create more value from AI, PE funds will need to develop people and organizational capabilities that harness the technology better than their peers. Think 10% tools, 20% data, and 70% people.

AI provides a much-needed edge by quickly analyzing investment opportunities, reducing bias in deal selection, and enhancing diligence processes. With the right data strategy and AI-driven insights, firms can screen deals more effectively—giving smaller funds the ability to compete with industry giants. Those that invest in both technology and talent will be best positioned to capitalize on AI’s potential.

How can AI drive growth in private equity beyond efficiency?

AI isn’t just about cost reduction—it’s a tool for driving growth. As discussed in West Monroe’s 2025 Private Equity Outlook, AI is only as powerful as the data behind it; without high-quality propriety insights, even the most advanced AI models will struggle to deliver meaningful impact.

Firms that leverage AI for predictive analytics can identify risks, improving internal decision-making and enhancing value creation across their portfolio. Whether it’s forecasting customer churn, optimizing staffing strategies, or improving financial modeling, AI is no longer a “nice to have”—it’s a necessity for firms looking to stay ahead.

Private equity firms that take a strategic approach to AI—investing in data, refining their use cases, and focusing on ROI—will gain a significant market advantage. The technology is there. The firms that learn how to use it best will be the ones that thrive.

Our private equity team recently attended the With Intelligence Women’s Private Equity Summit to discuss these topics and more with fellow industry leaders.

Author: Emilie Butler-Olimb