Harnessing AI in Dealmaking and Corporate Tasks
While investing in pure-play AI companies might be a strategic and VC game for now, private equity firms are studying AI applications at portfolio companies and implementing new tools in their own dealmaking work
By Britt Erica Tunick
Originally published by Middle Market Growth
While there is no shortage of money heading into AI-related businesses, so far, the largest inflows have been from large technology companies like Amazon, Apple and Google. Industry participants say there is good reason for that: AI technologies are in a nascent phase where the building blocks for future applications are still being laid, and it remains unclear how many emerging AI applications will ultimately be monetized.
“Private equity likes to see proven technologies. They want to find predictable and profitable revenue production. A lot of the AI investment today is in companies that are still experiencing cash burn but have high promise,” says Travis Drouin, head of Baker Tilly’s technology industry practice.
Many PE firms are waiting for pure-play AI companies—those where AI is ultimately the end product—to mature before investing.
Continue reading here
Learn more about Baker Tilly's Technology insights now
