Private Equity Sponsors and Portfolio CFOs Diverge on AI Adoption Approach

A recent survey by Accordion found that private equity investors and their portfolio CFOs are not aligned on AI adoption. While 98% of PE sponsors have asked CFOs to prioritize AI adoption, 68% of CFOs are hesitant due to a lack of knowledge on where to begin. PE sponsors believe AI adoption is critical for value creation, but CFOs are not acting as quickly as demanded.

A recent survey by financial consulting firm Accordion has revealed a significant misalignment between private equity (PE) investors and their portfolio CFOs regarding the adoption of artificial intelligence (AI) technologies. While 98% of PE sponsors have directed their CFOs to prioritize AI adoption, 68% of CFOs have expressed reticence due to a lack of knowledge on where to begin [1].

The survey, titled "AI in the PE-Backed Finance Function," found that sponsors are under immense pressure to drive more value and believe AI adoption is critical to value creation. However, CFOs are not acting as quickly as demanded, with many citing a lack of guidance on AI implementation as the primary reason for their hesitation [1].

This disconnect is not new. A previous study by Accordion found that 74% of PE sponsors were dissatisfied with their CFOs' performance, citing issues such as failing to get exit-ready, challenges with finance fundamentals, and not prioritizing performance or value creation [1]. The latest survey indicates that this misalignment is exacerbated by the AI adoption gap.

The survey also highlights that 99% of PE sponsors believe CFOs should adopt AI through practical finance workstreams such as automated close, cash flow forecasting, and invoice-to-cash automation [1]. Other studies have shown that AI can significantly improve productivity in these areas, with potential savings of up to 7.5 days in monthly financial close timing [1].

Despite the potential benefits, economic uncertainty has led to caution among both PE investors and CFOs. While 83% of sponsors want CFOs to invest in AI now, 74% of CFOs believe their investors would prefer to hold off on investments until economic uncertainty has passed [1]. This cautious approach is reflected in the second quarter of 2025, where proposed PE deployment activity was down compared to the previous quarter, with many investors waiting to see how the tariff situation would shake out [2].

In the SaaS sector, this AI-driven growth focus is evident in the acquisition of Dayforce by Thoma Bravo for $12.3 billion in August 2025. Dayforce's AI-powered human capital management (HCM) platform offers predictive analytics and automation, positioning it to outperform competitors like Workday and SAP [3]. This deal reflects a strategic alignment of private equity expertise with the transformative power of AI in enterprise software.

References:

[1] https://finance.yahoo.com/news/cfos-pe-sponsors-diverge-ai-151025380.html
[2] https://www.entrepreneur.com/business-news/microsoft-ai-ceo-dangerous-seemingly-conscious-ai-is-close/496256
[3] https://www.ainvest.com/news/thoma-bravo-12-3-billion-dayforce-buyout-blueprint-saas-creation-ai-era-2508/