Wealth managers that integrate AI with human expertise will gain a competitive edge, while others risk being left behind.Private equity firms are sitting on record levels of dry powder yet face increasing pressure to deploy capital wisely in an uncertain economic climate. Meanwhile, family offices and wealth managers are allocating more to private markets, creating additional complexity in deal flow, due diligence and reporting.This has opened the door for artificial intelligence (AI) to play a transformative role in private markets — not by replacing human judgment, but as a catalyst for sharper, faster decision-making.These technologies are transforming everything from deal sourcing to portfolio management. Such is the pace of innovation that even the makers of AI solutions are forced to regularly reassess what is possible.For private markets firms, however, the most immediate impact is in accelerating time-consuming processes that traditionally created bottlenecks. The average due diligence timeline has expanded to 203 days compared to 123 days a decade ago, an increase of 64 per cent, research by Bayes Business School found. With AI, it’s possible to shrink that down from months to weeks, and complete initial due diligence questionnaires in just a day.For example, firms can use AI to analyse thousands of documents across multiple data rooms simultaneously, flagging key risks and opportunities that merit human attention. Global real estate investment firm GTIS Partners previously spent five to 10 days completing due diligence questionnaires (DDQs) as part of the investor acquisition process. By leveraging AI, GTIS now completes DDQs in just one to three days.This also gives private equity firms a way to deal seamlessly with global transactions, by using either AI software directly or purchasing managed services solutions powered by AI, to ensure round-the-clock coverage. For family offices, the enhanced efficiency of AI is democratising access to deals that were previously difficult to evaluate with limited resources.Advising allocationsBeyond speed, we’re also beginning to see the impact of AI’s depth of insight. Specifically, AI is moving into the front office and playing a role in informing the investment decisions themselves.Machine learning algorithms can identify patterns across vast datasets that humans simply can’t process. This can be especially valuable in areas like deal sourcing, where AI can screen thousands of companies against investment criteria, highlighting opportunities that might otherwise be missed. For wealth managers advising on private market allocations, this technology enables more sophisticated portfolio construction and risk assessment.Firms are even leaning on AI to help generate conclusions and predictions — as Lisa Weaver Lambert, author of the AI Value Playbook, notes, investment committees are increasingly soliciting AI’s ‘opinion’ or ‘vote’ as part of the evaluation.However, it is impor
