PRIVATE EQUITY
PRIVATE-EQUITY LENS
PE teams need an owned baseline, a repeatable review cadence, and a path from identified exposure to measured action. Product COGS and internal operating expense should remain distinct.
DILIGENCE
Establish the baseline
Separate AI embedded in products from AI used internally, then reconcile tracked usage to provider invoices.
VALUE CREATION
Track action to impact
Assign owners to optimization, pricing, governance, and adoption work. Record the starting point and measured result.
EXIT READINESS
Keep evidence current
Maintain a defensible record of usage, cost, controls, and performance rather than reconstructing it during a sale process.
EVIDENCE FROM THE BENCHMARK DATABASE
46.9% of enterprises ran over budget on AI
· The Futurum Group
46.9% of enterprises reported running over budget on AI, against 31.8% approximately in line with budget and only 5.6% below plan
Only 17.2% of over-budget organizations pause or reduce the AI initiative
· Techstrong.ai
Among enterprises over budget on AI, only 17.2% pause or reduce the AI initiative itself, while 48% request additional budget and 43% absorb the overrun and settle it later
61% cut external contractors and consultants to fund AI overruns
· Techstrong.ai
Organizations over budget on AI fund the gap by cutting elsewhere: 61% reduce external contractors and consultants, 60% cut IT support and helpdesk, 58% cut software and application development, and 23% reallocate from a non-IT business unit budget
10% have no formal AI budget and 5.6% do not know where their AI spend stands
· The Futurum Group
10% of enterprises have no formal AI budget to measure spending against and a further 5.6% do not know where their AI spending stands, meaning roughly one in six cannot say whether they are over or under budget
US$795 billion of 2026 hyperscaler capex rising to nearly US$1.08 trillion in 2027
· Reuters (via Investing.com)
Microsoft, Alphabet, Amazon, Meta Platforms and Oracle are expected to spend a combined US$795 billion on capital expenditure in 2026, rising to nearly US$1.08 trillion in 2027, against total AI spending of nearly US$800 billion in 2026
42% would expand existing AI workloads if token prices fell 25% or more
· CIO Dive
42% of surveyed executives said they would expand existing AI workloads if token prices fell 25% or more, while only about 10% of workloads need advanced frontier-level reasoning
PORTFOLIO REVIEW
Use a consistent operating record.
[ 01 ]
Which portfolio companies use AI internally or in products they sell?
[ 02 ]
What is each company's cost baseline, and does it reconcile to provider invoices?
[ 03 ]
Where does AI affect gross margin, operating expense, or customer pricing?
[ 04 ]
Which value-creation actions have a named owner and a measured outcome?
[ 05 ]
Can each company produce the evidence required for governance review or a transaction?
