Paolo Fornasini — Venture - Top Of The Stack: Mapping Today's AI x PE-tech Landscape - May 2024

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Mapping the AI applications market for private capital investing

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About Paolo Fornasini — Venture - Top Of The Stack: Mapping Today's AI x PE-tech Landscape - May 2024

This Medium article by Paolo Fornasini presents a detailed market map of the AI applications landscape specifically for private equity (PE) investing. Based on conversations with nearly 250 PE leaders, the article analyzes how firms are navigating the AI stack—from point solutions to proprietary model development. It provides a framework for understanding buyer behavior, highlighting that PE firms are increasingly considering investments in lower layers of the stack (e.g., LLMs, data pipelines) rather than relying solely on off-the-shelf applications. The piece includes proprietary diagrams and insights aimed at helping business and technology leaders make informed decisions about AI adoption in the private capital space.

Key Features

Market map diagram specific to AI x PE-tech landscape

Analysis of buyer behavior across the AI stack (LLMs, data pipelines, applications)

Insights from interviews with nearly 250 private equity leaders

Comparison of proprietary model development vs. point solution adoption

Examples of large funds like KKR and Blackstone leveraging AI

Pros & Cons

Pros

Provides a comprehensive, current snapshot of the emerging AI x PE market
Based on extensive primary research (250+ interviews)
Includes a visual market map and clear framework for understanding the AI stack
Practical for decision-makers comparing build vs. buy approaches

Cons

Focused solely on the private equity sector, limiting applicability to other industries
As a market analysis, it may become outdated as the AI field evolves rapidly
Lacks detailed technical specifications or product-level comparisons

Best For

Private equity professionals evaluating AI solutions for sourcing, due diligence, and portfolio managementTechnology leaders navigating the AI vendor landscape in financeResearchers and analysts studying AI adoption trends in alternative investments

FAQ

What is the main purpose of this market map?

The article aims to help business and technology leaders understand the dynamics connecting AI providers and buyers in the private equity space, enabling more informed decisions about AI adoption across the stack.

What did the author learn from interviewing 250 PE leaders?

Buyers show a higher interest in adopting technology further down the stack (LLMs, data pipelines) compared to other enterprise tech markets. Many firms are weighing proprietary model development against point solutions, often eyeing both ends of the spectrum.