Artificial Intelligence May Slash Operating Teams

Fewer operating professionals will be required to get the same (or better) outputs at the portfolio company level.

The rocky private equity landscape after 2022 made operating teams all the rage — according to a September 2022 survey from Alvarez & Marsal, more than half of firms aimed to grow their operating teams by at least 50 percent through 2024. Indeed another consultancy, Hendricks & Struggles, found that between 2022 and 2024, the number of firms that employed operating executives tripled.

But the buck likely stops here. With the advent of generative artificial intelligence, most tasks completed by operating partners stand to be automated.