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How EY can help
Getting the strategic balance right
On the one hand, many PE firms are urgently exploring GenAI use-cases and pilots, intuitively sensing that this new technology will provide immediate value-creation opportunities. Some are already experimenting with large language models (LLMs) to analyze market trends and patterns, to manage documents faster and easier, and to automate back-office and customer-facing functions.
These are good instincts, but moving fast requires firms to address strategic challenges, too.
On the other hand, PE firms are already thinking about how GenAI might affect their investment strategies by transforming target verticals and horizontals.
And let’s not forget the broader risks associated with the use of GenAI, which go beyond legacy issues such as privacy and cybersecurity and now include biased training data or “hallucinations” – all of which can have an impact on value and reputation.
Getting the right balance of tactical and strategic decision-making, while managing potential risks, amid the hype surrounding GenAI can be difficult. So, what are the moves that PE firms can take to seize the opportunities of GenAI?