Why AI Initiatives Often Start in the Wrong Place

PE-CXO’s Success Stories feature private equity-backed experts and operators sharing the tools, tactics, and perspectives they use to create real value. In each entry, an experienced leader explores a practical approach to a critical business challenge. To be featured, contact mallory.stokker@pe-cxo.com.    

Executive: Kenny Jen is co-founder of QuantFi, an AI-native finance and accounting firm serving investor-backed companies. Over the course of his career as a growth equity investor, in-house finance leader and fractional CFO, he has worked with management teams to build, automate, and run scalable finance and accounting functions. He specializes in helping organizations leverage AI, automation and institutional knowledge systems to streamline financial operations and create durable operating leverage: faster closes, auditable reporting, and growth without added headcount.

Challenge: PE sponsors are increasingly viewing AI as a potential driver of efficiency, scalability and enterprise value creation. Yet many portfolio companies discover that automation alone cannot solve underlying operational challenges. Bottlenecks, fragmented workflows, undocumented processes and unclear ownership often limit the impact of AI initiatives, creating tension between the promise of new technology and the realities of execution.

Sponsors are increasingly asking management teams how they plan to leverage AI, where it fits within value creation plans and what returns they should expect from implementation efforts. Yet many portfolio companies are approaching the conversation from the wrong angle.

Rather than starting wit...