Measuring AI ROI in Private Equity

This paper presents a practical framework for measuring the return on investment of AI systems in private equity environments. Moving beyond traditional technology ROI metrics, it introduces a dual-axis framework that evaluates AI impact through both decision velocity and decision quality dimensions. The framework addresses a critical gap in how investment firms justify and optimize their AI spending, providing metrics that align with how PE professionals actually evaluate performance. By balancing speed of analysis with accuracy of outcomes, firms can more accurately assess whether their AI investments are delivering genuine competitive advantage in deal screening, portfolio monitoring, and strategic decision-making.