Some 82% of general partners who responded to a survey said they were using some form of artificial intelligence in the fourth quarter of 2024, a jump from 47% of respondents in the year-ago quarter.
That was one of the findings of the "2025 General Partner Outlook Survey" released by Allvue Systems on Dec. 11.
However, despite the large portion of surveyed firms adopting AI, such applications remain under-utilized as 52% of respondents reported only minimal use. The principal barriers to broader application of AI, the survey found, were regulatory and compliance issues (cited by 27% of respondents), data quality concerns (26%) and lack of skilled personnel (19%).
Among other concerns related to AI adoption: 29% of firms were unsure how to deploy AI nor could they identify processes that would benefit from AI; 24% cited unclear return-on-investment as a deterrent; and 20% reported that AI projects lack internal support.
Still, despite these obstacles, optimism about the future use of AI remains significant. Indeed, 54% of respondents believe AI could serve as a key competitive differentiator.
AI’s greatest potential, the firms said, would be in enhancing operational efficiency (cited by 31% of respondents), improving data management and reporting (23%) and aiding decision making (18%). Encouragingly, only 9% of surveyed firms cited high costs as a significant challenge to AI adoption.
The survey also focused on the topic of data management in the GP/limited partner market.
Almost two-thirds (65%) of surveyed firms reported challenges with data accuracy and aggregation; and only 6% expressed a high rate of satisfaction with their current data management solutions.
These issues are particularly pressing as 58% of GPs ranked data collection and reporting as their highest organizational priority.
“The survey findings reveal an industry at a crossroads, where the potential of advanced technologies like AI and robust data solutions remains out of reach for many firms,” said Ivan Lantanision, chief product officer of Allvue, in a release issued with the survey. “As the market evolves, overcoming these challenges will be critical to maintaining a competitive edge.”
Allvue is a provider of technology for investment managers in the private capital and credit markets industry.
Some 38% of firms that took part in the survey has assets under management of between $1.1 billion and $10 billion; 24% had AUM in excess of $50 billion; 16% had AUM below $100 million; 10% had AUM 0f between $10 billion and $50 billion; while another 10% had AUM of between $500 million and $1 billion. The remaining 2% had AUM between $100 million and $500 million.
Respondents comprised senior level executives, including chiefs, heads, partners, presidents, managing directors, directors, managers and analysts.
A spokesperson for Allvue said the survey was conducted in the third and fourth quarters of 2024 and comprised 50 respondents.
