New Approach to Value Creation: PE Funds Embed AI Expertise

Leading private equity firms are taking a proactive approach to digital transformation by placing artificial intelligence specialists within their portfolio companies. This strategy aims to unlock new revenue streams rather than solely focusing on cost savings—a shift reflecting the evolving view of AI’s potential.

Blackstone and Hellman & Friedman have partnered with Anthropic in a $1.5 billion venture called Ode, creating a 160-person team of experienced AI engineers. Unlike many new AI initiatives that rely on recent graduates, Ode boasts seasoned professionals who can rapidly implement practical solutions. Blackstone plans to extend this service to 25 of its more than 270 portfolio companies.

The Chamberlain Group, a garage-door opener manufacturer owned by Blackstone, is already using Ode’s expertise to expand software features that inform homeowners about package deliveries—demonstrating how AI can enhance existing products and services. According to Chris Taylor, CEO of Ode, the customer pipeline extends far beyond private equity-backed businesses.

This trend follows OpenAI’s launch of a similar consulting venture backed by TPG, signaling broader recognition of AI’s strategic value across industries. As business leaders increasingly scrutinize technology spending, private equity firms are positioning themselves to help companies maximize returns from AI investments—moving beyond initial hype to deliver tangible results.

Consumer Adoption Accelerates Across Retail

The growing integration of AI extends to consumer-facing applications as well. Target CEO Michael Fiddelke noted that digital traffic sourced from external AI platforms is expanding, reflecting consumers’ increasing comfort with AI shopping tools. Research by PYMNTS Intelligence shows 38% of users leverage AI to compare prices and find deals, while nearly half (49%) would allow assistants to make purchases on their behalf.

This shift highlights a fundamental change in how consumers engage with brands—seeking personalized experiences and efficient solutions that AI can uniquely deliver.