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Matthias Knab, Opalesque for New Managers:

Private equity fund managers have moved AI into their compliance and regulatory reporting workflows faster than they have written rules for it, according to new research from asset services provider Ocorian.

The study surveyed 300 senior executives at private equity fund managers in the U.S. and Europe collectively managing $3.511 trillion. Just one in 20 said they have policies governing the use of AI in compliance and regulation. By contrast, 89% have formal policies covering the use of AI in investment decision-making - a gap of nearly 17 to one between the two functions.

The gap matters because AI is already there. Some 69% of respondents said AI is used for compliance and regulatory reporting in relation to deals and decision-making, making it the most widely reported AI use case in the survey. Portfolio monitoring and performance analytics followed at 57%, due diligence and data analysis at 44%, and investor communications and LP reporting at 41%.

Adoption is not the bottleneck

Only 1% of the managers questioned said they were not using AI at all in investment deals and decision-making, with a further 37% still at the piloting stage. The remainder have it in production.

What is slowing firms down is the plumbing underneath. Seven in 10 (70%) identified integrating new ......................

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