Passively reading consultant decks is insufficient for grasping AI's potential. True understanding comes from active experimentation. Firms and their portfolio companies should "get their hands dirty" by building their own AI agents and co-pilots to discover the art of the possible and apply it directly to their own operations.
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To build truly effective agents, adopt a "founder's level of service" mindset. This involves an intensive discovery process to become a temporary expert in the client's business, culture, and brand voice. This deep, meticulous care ensures the final AI system is perfectly aligned with the client's intentions.
AI is a 'hands-on revolution,' not a technological shift like the cloud that can be delegated to an IT department. To lead effectively, executives (including non-technical ones) must personally use AI tools. This direct experience is essential for understanding AI's potential and guiding teams through transformation.
Product leaders must personally engage with AI development. Direct experience reveals unique, non-human failure modes. Unlike a human developer who learns from mistakes, an AI can cheerfully and repeatedly make the same error—a critical insight for managing AI projects and team workflow.
Simply instructing engineers to "build AI" is ineffective. Leaders must develop hands-on proficiency with no-code tools to understand AI's capabilities and limitations. This direct experience provides the necessary context to guide technical teams, make bolder decisions, and avoid being misled.
Private Equity value creation has evolved. In the 2000s, it was driven by leverage; in the 2010s, by digital transformation. Today, AI serves as the new foundational "operating system" for growth, embedding intelligence into every process, contract, and customer touchpoint to drive returns.
Treat advanced AI systems not as software with binary outcomes, but as a new employee with a unique persona. They can offer diverse, non-obvious insights and a different "chain of thought," sometimes finding issues even human experts miss and providing complementary perspectives.
The future consulting model may flip traditional roles. Instead of hiring firms for primary analysis, organizations could develop their own 'agentic AI' for strategy creation and use external human experts simply to validate the AI's output, relegating consultants to a secondary role.
The true enterprise value of AI lies not in consuming third-party models, but in building internal capabilities to diffuse intelligence throughout the organization. This means creating proprietary "AI factories" rather than just using external tools and admiring others' success.
Beyond automating data collection, investment firms can use AI to generate novel analytical frameworks. By asking AI to find new ways to plot and interpret data inputs, the team moves from rote data entry to higher-level analysis, using the technology as a creative and strategic partner.
Go beyond using AI for simple efficiency gains. Engage with advanced reasoning models as if they were expert business consultants. Ask them deep, strategic questions to fundamentally innovate and reimagine your business, not just incrementally optimize current operations.
