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Private Equity Firms Brace for AI Disruption in Tech

2/13/2026

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Story summary
  • Private-equity firms face challenges as heavy investments in software, which boomed in the 2010s, may be disrupted by artificial intelligence.
  • They relied on recurring revenue from enterprise software, fueling significant gains.
  • Private-equity funds allocated about a third of their capital to technology firms in the past decade.
  • As the landscape shifts, investors must navigate potential troubles ahead.