WorkThe story, in brief
Beyond productivity: How AI creates value in private equity
2x revenue multiples. That's what PE-backed companies get when they go beyond AI productivity plays.
The KeyNews take
Why it matters
PE firms are discovering that AI's real value isn't in automating tasks—it's in reshaping business models and market positioning. Companies that treat AI as strategic rather than operational are commanding dramatically higher valuations.
The key facts
4 to knowPE-backed companies embracing AI broadly have median revenue multiples 2x+ higher than productivity-focused peers
McKinsey research on AI value creation in private equity
Distinction: AI as operational efficiency vs. AI as business model transformation
Published June 2026 - recent market research
Go to the source
McKinsey Insightsmckinsey.com
Publisher excerpt: Private equity–backed companies that broadly embrace AI have median revenue multiples more than twice those of companies focused solely on productivity initiatives.