Article
9 March 2026AI Only Matters When It Moves EBITDA
Successful organisations are not more excited about AI. But, they are more disciplined about problem definition.
What this looks like in reality is this :
They use AI where it is necessary, not where it is fashionable.
They embed governance into engineering rather than bolting it on afterwards.
And they can explain every intelligent system they deploy in terms of commercial impact and authority boundaries.
Private equity does not fund technology. It funds outcomes. The mistake many PortCos make is treating AI as a capability conversation. In a PE context it is an operating leverage conversation. The starting point is not “Where can we use AI?”
Where is working capital tied up unnecessarily?
Where is margin eroding through process friction?
Where is risk building that could impair exit?
AI is relevant only if it improves one of those four.
The Discipline That Investment Committes Respect
An Investment Committee will tolerate risk, but it will not tolerate vagueness.
If you arrive with “AI transformation”, the questions will come quicky:
If those answers are not precise, the proposal stalls.
That is why the earlier discipline matters.
Do you need help with separating AI fiction from AI facts? We are helping clients navigating AI disruption by understanding the problems you need to solve. Before we help you find a solution.