Beyond the Hype: What PE Firms Really Need from an AI Operating Partner

At the PEI Operating Partners Forum in Napa, our closed-door workshop session brought together forward-leaning value creation leaders and technologists to unpack a fundamental question: What exactly is the role of an AI Operating Partner?

There is no one-size-fits-all playbook, but there are unmistakable patterns forming among high-performing firms.

Make AI a core capability

The firms leading the way in AI transformation aren’t treating AI like a tech upgrade. They’re institutionalizing it, starting with the Board, threading it through sourcing, diligence, value creation, and eventually embedding it into portfolio companies’ daily operations.

• AI isn't a department, it's a firmwide competency: At one firm, leadership is committed to ensuring data and AI are embedded into strategy from day one. While dedicated roles for AI matter, so does broader firmwide integration.
• The title is evolving: Whether it’s a partner, advisor, or technologist, the most effective AI leaders are embedded into decision-making, not bolted on afterward.

Start with strategy

Those seeing success are bypassing the tech-first, "let's try ChatGPT" mindset. Instead, they're creating structured frameworks to evaluate where AI can truly move the needle across product, operations, and enterprise functions.

One AI leader developed a new approach that has been effective so far. This method helped:

• Cut through noise and identify high-ROI opportunities
• Align leadership around strategic focus areas
• Build a growing library of 160+ repeatable use cases
• Develop AI "foundries" to rapidly clone and deploy GPT agents across portfolio companies

When (and why) to bring on an AI Operating Partner

AI is dynamic, messy, and high velocity, which makes having an internal guide essential. Over and above advisement, this person’s role is centered on:

• Running AI assessments across the portfolio pre- and post-acquisition
• Translating strategy into execution via frameworks and playbooks
• Upskilling functional operating partners across domains
• Vetting vendors, managing implementations, and embedding learnings
• Shaping Board-level conversations on where and how AI drives value

In theory, it has become a prerequisite for value creation. Additionally, at this point, most LPs are asking about AI strategy during fundraising conversations.

Leadership alignment is non-negotiable

Without CEO buy-in and Board sponsorship, AI initiatives stall. The most successful transitions start at the top with:

• CEOs who understand they may not be the right leaders for the AI transformation
• Boards that demand data-first thinking and model-based decision making
• PE owners who connect AI impact directly to EBITDA growth and exit valuations

Measure ROI from day one

The room acknowledged that AI ROI can be elusive in the short term, but that doesn’t mean there is no measurable value associated with it.

Pre-generative AI (data strategy, workflow automation) already delivers hard returns. Generative AI is newer and noisier, but ripe with opportunity if framed properly.

What firms are currently doing:

• Tracking early wins (i.e. cost savings, automation, no headcount growth despite revenue scale)
• Using AI to evaluate talent, including AI-powered interviews to assess fluency and fit
• Starting small, iterating quickly, and building internal conviction over time

The future of the role

Down the line, AI capabilities may become so intertwined across go-to-market, product, finance, and ops that no special title is needed. Until then, having someone own the charge is critical.

Final thoughts

For operating partners and technologists alike, the message is clear:

• Don't wait for things to be crystal clear - build the muscle now
• Enable every functional leader to be AI-fluent
• Treat AI as a capability rather than a tool

The firms that follow the above framework will outpace those still asking, "What is AI?" five years from now.