AI Speeds Up Returns in Private Equity as M&A Becomes Top Value Generator for Firms

FTI Consulting's 2026 Private Equity Value Creation Index, based on a survey of more than 550 senior private equity leaders, reveals a significant acceleration in value creation across the industry, with artificial intelligence playing a critical but uneven role. The data demonstrates that private equity firms are now delivering measurable results far more rapidly than in prior years, with 63% of respondents achieving impact within 12 months compared to 41% in 2025—a stark 22-percentage-point increase in a single year.

AI is driving measurable improvements in speed-to-value, with 66% of firms reporting AI-related benefits within 12 months, more than doubling from 34% in 2025. This dramatic improvement reflects a fundamental industry shift away from experimental AI pilots toward narrowly focused, execution-oriented applications tied directly to established value creation levers. Rather than pursuing broad, speculative AI initiatives, leading firms are concentrating deployment on high-impact operational and commercial use cases.

However, the survey reveals a critical execution gap that tempers enthusiasm about AI's transformative potential. Only 31% of responding firms report efficient or mostly efficient AI implementation, while the majority characterize their results as mixed or difficult. This disparity suggests that while the industry recognizes AI's potential to compress timelines and enhance decision-making, translating that potential into consistent operational value remains challenging for most organizations.

Notably, mergers and acquisitions have re-emerged as the industry's top value creation driver, despite the fact that M&A integration historically takes longer to yield results compared to operational improvements or margin expansion. Scott Bingham, Global Co-Leader of Transactions at FTI Consulting, emphasized that this shift requires firms to treat integration and execution as core capabilities rather than ancillary functions. He noted that "AI is delivering faster outcomes, but it's most effective when embedded into core operational and commercial initiatives," underscoring that success depends on strategic deployment rather than technology adoption alone.

The convergence of accelerated timelines, AI-driven efficiency, and M&A's elevated importance suggests a fundamental restructuring of private equity value creation strategy. Firms that combine disciplined AI implementation with M&A execution excellence are positioned to outperform peers, while those struggling with implementation gaps face competitive disadvantage in an increasingly velocity-driven market.