{
  "id": 7772646,
  "title": "From due diligence to market mapping: Private capital is leaning on AI",
  "url": "https://urgent.news/2026/09/16/from-due-diligence-to-market-mapping-private-capital-is-leaning-on-ai",
  "topic": "ai",
  "section": "AI",
  "published": "2026-09-16T10:57:06.000Z",
  "source": {
    "name": "City AM",
    "slug": "city-am",
    "url": "https://www.cityam.com/from-due-diligence-to-market-mapping-private-capital-is-leaning-on-ai/"
  },
  "original_language": "en",
  "account": "Private equity and venture capital firms are increasingly relying on artificial intelligence to handle administrative and back-office tasks, allowing staff to concentrate on more critical matters. According to exclusive data shared with City AM, nine out of ten firms now use AI to aid at least one aspect of their business. Over 90% of these firms utilize AI for due diligence and document reviews, with an additional seven percent planning to do so in the future. A significant 84% of firms employ AI for deal sourcing and market mapping, alongside other administrative functions. This shift aims to alleviate staff's manual workload, enhance investor relations, and expedite deal execution. However, some firms are also leveraging AI to assist in portfolio management, with nearly 80% reporting its use for portfolio monitoring, performance analysis, and investment reporting. Michael Moore, CEO of UK Private Capital, explained that \"Adoption is now widespread across the industry.\" The organization emphasizes its role in helping companies identify practical applications for AI, develop necessary capabilities, and effectively manage adoption. While firms encourage their portfolio companies to adopt AI, particularly for administrative tasks, the use of AI in compliance, legal, risk management, and financial reporting is less promoted due to the heightened regulatory and governance requirements associated with these areas. Kanishka Narayan, UK's AI minister, noted that these findings highlight the critical role private capital firms play in supporting AI adoption. The government aims to position the UK as the \"fastest adopter of AI in the G7,\" with former Chancellor Rachel Reeves committing a record £2.5 billion to achieve this goal. However, the Financial Conduct Authority (FCA) has called for more robust regulations to govern AI, as it becomes increasingly prevalent in financial advice provided to consumers through chatbots. The watchdog contends that AI will be a \"defining force\" in retail financial services over the next decade, influencing how firms operate and markets function. Currently, AI tools are not subject to FCA regulation, leaving consumers with no recourse for compensation or protection in case of wrongful advice.",
  "summary": "Private equity and venture capital firms are handing over administrative and back-office tasks to artificial intelligence agents in order to shift staff focus to more pressing matters. AI is becoming increasingly embedded across the UK private capital industry, with nine in ten firms now using the technology to support at least one business activity, according [...]",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}