Artificial Intelligence has been quietly shaping business transformation for years, particularly in the B2B Saas space, where machine learning, predictive analytics, and automated workflows have optimized operations. But in November 2022, when public Artificial Intelligence platforms (such as ChatGPT or AI image generators) were made widely available, the conversation around AI shifted dramatically. No longer confined to back-end automation or incremental efficiency gains, AI has become a visible, strategic force that is reshaping businesses thanks to widespread implementation.

AI in Private Equity: A New Frontier

Nowhere was the application of AI technology more transformative than in the private equity sector. At their core, private equity firms pursue scalable growth and efficiency and have been using AI for years to assess market trends, automate due diligence, and streamline portfolio management. However, what was once a behind-the-scenes advantage moved into the forefront overnight.  

Suddenly, AI-driven automation could enhance the scalability of B2B SaaS companies in profound and measurable ways – the ability to fine-tune pricing models, hyper-personalize customer interactions, and generate software code at an unprecedented rate.  AI has become the catalyst for competitive reinvention in PE-backed business strategies. By leveraging AI in a vast array of different methods, private equity firms are in the middle of redefining their workflows, actively reducing costs, and enhancing product offerings. 

With its unparalleled capabilities in consuming, parsing, analyzing, and ultimately regurgitating data and numbers, AI has proven invaluable prognostication tool for numerous businesses worldwide. These predictive analytics, combined with widespread automation, have created better, more efficient, and scalable business models. 

Case in Point: AI’s Impact on Investment Models

Savant Growth is a private equity firm focused on B2B SaaS companies that leverage AI and predictive analytics. The company has separate funds from US and European investors, and it prioritizes capital-efficient companies with strong product-market fit. 

Additionally, the company offers founder liquidity upfront and aims for universal portfolio success by evaluating the market size, sales, capital efficiency, and AI-driven automation potential for the business. The firm also provides operational support with a Latin American outsourced development organization to enhance innovation and cost-effectiveness.

As Javier Rojas, the founder of Savant Growth explains, “We help on working with their AI thesis and where to create that value and how to capture that when they go to exit.”​

Amidst the rapidly paced advancement of AI, portfolio companies need to adapt and integrate AI capabilities into their products and workflows quickly. Rojas emphasizes the importance of “CEO-led AI initiatives to drive the necessary changes and capture the economic benefits” and how Savant Growth suits these needs.

The Future of AI and Private Equity 

The future of AI in private equity is not just about operational efficiencies – it’s about redefining how firms create value. AI-driven investment strategies focus on scalable, systematic growth across entire portfolios – embedding AI into customer experience, automation, and product innovation. SaaS companies that successfully execute an AI strategy will unlock new levels of capital efficiency, accelerate revenue growth, and drive more predictable outcomes. 

As AI continues evolving at an extremely rapid rate, its role in private equity will only expand. The PE firms that embrace AI not only as a tool but also as a strategic driver of growth will be the ones shaping the next era of investment. From intelligent automation to AI-powered decision-making, private equity firms that effectively harness the power of AI will enable their portfolio companies to scale faster, operate more efficiently, and achieve levels of growth and innovation that were once impossible.