The Rise of the AI Operating Partner: What It Means for PE Value Creation

These aren't experiments. They're systematic approaches to AI as a value creation lever - and they're driving a new role in PE: the AI Operating Partner.

According to EY's Q4 2025 AI Pulse, 84% of PE firms have now appointed a Chief AI Officer.[3] Two-thirds of GPs expect operational value creation to become more important than financial engineering over the next five years.[4] AI is central to that shift.

The Scaling Problem

Here's the gap: 60% of portfolio companies are experimenting with AI, but only around 5% have scaled to production.[5] That's a lot of pilots going nowhere.

FTI Consulting found that 40% of PE firms are still managing AI investments at the portfolio company level—a decentralised approach that makes it nearly impossible to share learnings or replicate what works.[6] The firms pulling ahead have structured playbooks that work across multiple companies.

What's Actually Working

The specifics matter more than the headlines. At Vista portfolio company Avalara, a generative AI tool increased sales rep response time by 65%.[2] LogicMonitor's AI solution generates an average $2 million in annual savings per customer - driving meaningful recurring revenue uplift.[2]

These are production systems with measurable P&L impact, not pilots.

Apollo's approach is instructive. Their centre of excellence runs regular workshops demonstrating what's achievable and what's getting results. Each portfolio company is asked to identify three to five potential use cases aimed at near-term strategic priorities and develop a technology roadmap.[2] They've built an ecosystem of AI specialists, technology partners, and service providers across areas including strategy, product development, sales effectiveness, and procurement.

The pattern across successful deployments: start with use cases that have clean data and clear ROI measurement in areas like order book intelligence, sales productivity and demand planning.

The Exit Story Matters

With over 4,000 US portfolio companies aged five years or more waiting to exit, the pressure to demonstrate operational improvement has never been higher.[7] Acquirers now prioritise businesses with consistent operational gains through technology over those relying on financial engineering alone.[8]

AI implementation isn't just about the hold period. Companies that can show documented efficiency gains, working systems, and scalable approaches command premium valuations from both strategic acquirers and secondary sponsors.

What This Means for Operating Partners

AI strategies are now part of core value creation. The firms treating AI as a side project or leaving it entirely to portfolio company management are falling behind. The firms winning have structured approaches: identifying use cases, validating ROI quickly, and scaling what works.

Every firm needs access to the right capabilities: structured assessment, rapid deployment, and repeatable playbooks that drive measurable EBITDA impact within typical hold periods.