Private markets leaders highlight AI as the next transformative force, but adoption remains slow

In October, the PEI Group released its fifth annual Women of Influence in Private Markets list, recognising 42 women making significant contributions across alternative asset classes, including private equity, infrastructure, real estate, private debt, and venture capital. Marking the list’s fifth anniversary, the 2025 cohort shared their insights on the most transformative trends shaping their sectors over the past five years and looking ahead. Among themes such as democratisation, decarbonisation, and the rise of secondaries, the most frequently highlighted trend was the expanding role of artificial intelligence (AI) in private markets, not only as a critical investment theme but also as a powerful operational tool.

This perspective aligns with broader industry sentiment. Mercer’s 2025 Large Asset Owner Barometer reveals that 43 percent of large asset owners regard AI as highly influential in shaping the macroeconomic environment over the next five to ten years, a view that surpasses concerns about geopolitics and climate change, each cited by 34 percent. However, the same report underscores a striking disparity: while AI’s significance is widely recognised, 69 percent of these asset owners have yet to implement or develop a formal AI policy, and only 10 percent plan to do so within the coming year. This suggests a gap between awareness of AI’s transformative potential and concrete strategic adoption.

The Women of Influence, leaders across a spectrum of alternative asset classes, offer nuanced insights into AI’s impact and future trajectory within their fields. Lori Hall-Kimm, senior managing director and head of global private equity at the Healthcare of Ontario Pension Plan, describes AI as revolutionising private equity and reshaping investment landscapes. She anticipates that within five years, AI will be integrated at every stage of the investment process, from deal sourcing and due diligence to decision-making and value creation, unlocking compelling opportunities but also presenting new risks.

Similarly, Patsy Sandys, managing director and head of co-invest at DigitalBridge, identifies AI’s proliferation as a transformational driver in digital infrastructure. This surge in AI demand, she notes, is fueling expansion in data centres, connectivity through towers, fibre deployment, and small cell densification. Looking forward, Sandys expects infrastructure development to pivot increasingly toward the power transmission and distribution required to sustain AI’s extensive computing needs.

In venture capital, Soraya Darabi, founder and managing partner at TMV, characterises the AI revolution as the most monumental technological advancement of our lifetime. She highlights rapid capital reallocation toward AI infrastructure, foundational models, and vertical applications across asset classes. Darabi stresses that future success in venture capital will hinge on ethical AI development considered from inception, not as an afterthought, given the stakes involved.

From a private equity operational perspective, Jennifer James, managing partner, chief operating officer, and head of investor relations and marketing at Thoma Bravo, points to accelerated adoption of data analytics and AI for enhancing due diligence, performance monitoring, and data-driven decision-making. She foresees AI’s role deepening over the next five years, becoming even more integral to fund and market assessments.

Infrastructure specialist Shami Nissan, managing director of sustainability at Actis, links AI to building resilience in infrastructure assets. According to Nissan, AI can enhance the durability of energy assets by improving performance and operational capabilities both pre- and post-commissioning, thereby future-proofing economies and infrastructure systems.

Acknowledging AI’s profound impact whilst noting sector-specific cultural dynamics, Zoe Hughes, chief executive of the Pension Real Estate Association, points out that real estate remains fundamentally rooted in trust and relationships. She suggests that the next five years will test industry participants’ ability to balance data-driven automation with human judgement and empathy.

Despite this optimism about AI’s transformative potential across private markets, Mercer’s research highlights ongoing challenges in governance and strategic investment. Over half of large asset owners view complex governance structures as impeding timely decision-making, especially in areas like AI and private markets. Although more than a quarter plan to boost investments in risk systems, data integrity, and compliance over the coming year, fewer than one in three intends to make significant AI-related investments during the same period. This lag points to a need for asset owners to accelerate their adaptation and build AI capabilities as a strategic priority.

In sum, industry leaders and large asset owners alike acknowledge AI as a key driver reshaping alternative asset classes, from deal origination and infrastructure demands to ethical considerations in venture capital and operational precision in private equity. Yet, the speed of adoption and governance transformation appears uneven, underscoring both the immense opportunity AI presents and the challenges inherent in fully integrating this technology into private markets over the coming decade.