A new report has revealed that while artificial intelligence remains a top priority for private market chief financial officers, practical implementation remains in its early stages.
The survey from investor services group IQ-EQ found that technology is the primary focus for operational investment, with 42% of CFOs identifying it as their top priority.
However, adoption of advanced tools like AI is uneven.
While 56% of respondents reported significant improvements in operational efficiency due to AI, one in five admitted they are not yet leveraging the technology effectively.
Key use cases for AI in the sector include fund performance analysis, streamlining data collection, and enhancing predictive analytics for decision-making, the survey said.
Despite this, a lack of foundational digital infrastructure and a global talent crunch for skilled data scientists continue to slow progress.
“The potential is extremely high, but take-up is still limited,” noted Tamas Mark, global head of real assets at IQ-EQ.
“People get distracted by the noise and hype around AI, but it’s the underlying data that really matters.”
The report also highlighted that 18% of organisations currently lack a clear data strategy.
High system upgrade costs and the difficulty of hiring specialised teams were cited as the leading barriers to digital maturity.
Experts suggest firms must focus on building solid data platforms to ensure “good inputs” before attempting to train large language models on proprietary data.
IQ-EQ is a global provider of investor services, including fund administration and corporate solutions, with an office in the Cayman Islands.
