Eight ways an AI roadmap will give investors a reason to back your business

If your business is seeking investment, or intends to in future, it’s worth considering the advantage that Artificial Intelligence (AI) can provide in the highly competitive battle for funding.

Private equity (PE) is a rapidly growing source of investment for UK businesses. In 2023, a total of 1,944 firms achieved PE funding; an increase of almost 50% on the 1,335 companies that received it in 2018.

When seeking an injection of cash, it’s vital to have your finger on the pulse of what investors are looking for. The main goal of an investor, of course, is to make a healthy return on the money they spend – and the sector is currently drawn to AI.

Little wonder: global consultancy EY calculates that businesses using AI in their sales and growth strategies can boost revenues by up to 45%. This has caught the attention of business leaders beyond the PE community, with seven in 10 CEOs at global companies telling EY their organisation needs AI to remain competitive.

So, it seems AI strategies are set to become a key aspect of achieving PE investment in the years ahead. If your business does not already have a roadmap for establishing, or expanding use of, AI as part of your operations you could get left behind when it’s time to seek investment.

Eight reasons to have an AI roadmap in place

According to the latest statistics AI is continuing to gather pace as a vital workplace tool, with 77% of businesses either already using, or exploring opportunities to use, the technology. That means a big majority of firms are discovering the power of AI-driven platforms such as Microsoft 365 Copilot.

There are multiple reasons why Copilot is prompting PE investors to take note of AI-driven businesses:

1. Competitive edge – AI can significantly improve your operations, decision-making and overall efficiency. These are all signifiers of innovation, agility – and growth potential.
2. Overhauled operations – All-important profit margins get a boost because AI can handle massively increased workloads without a proportional rise in costs.
3. Rising revenues – Harnessing AI allows you to find new ways to expand your product set and services, widen your customer base, try new sales and marketing techniques, and take advantage of new revenue opportunities; just what growth-focused investors are keen to see.
4. Attracting acquirers – Investors looking to buy in to, but also to buy out businesses tend to turn their eye towards those that are proven leaders in their field, offering a premium service. Having an AI roadmap highlights your position as an organisation that’s keen to benefit from using advanced technologies.
5. Better decisions – Businesses can rise or fall on the strength and speed of their decision-making. With data analysis and insights provided by AI to support the process, you can set your course with greater certainty, in a timely fashion, while reducing risk.
6. Keeping agile – ‘Agility’ is a watchword for the world’s leading businesses. It’s also a key component in any company that PE investors seek to fund or acquire. AI technology helps you to adapt quickly to market changes and emerging trends. That way, you’ll remain resilient and stay one step ahead of your target audience.
7. Tech for your talent – AI is attractive to investors and boosts business, but it’s also becoming a must-have for employees. Research states 75% of professionals in 31 countries expect to use the technology in their day-to-day role. This could be the difference between keeping and losing your best talent. By retaining skilled workers your business succeeds.
8. Pick up productivity – An efficient business is a profitable business, and a happy team is a productive team. Both may be clichés but they still ring true. AI can take productivity to new heights by speeding up humdrum tasks and leaving room for team members to get on with other work.

Does AI provide an investment opportunity or risk?

We haven’t yet reached the stage where having an AI roadmap in place is a dealbreaker for PE firms looking for their next investment. At present it’s a case of shining alongside your rivals if you do have a strategy drawn up. You’ll show you’re on an innovation footing, and forward-thinking in terms of scalability, efficiency and staying competitive.

But it’s also fair to say that one day soon, being able to demonstrate that AI runs through your business, with clear goals in place, will become a PE prerequisite. It’s a conversation we’re having more often with our customers and the investment community, with PE firms beginning to rate an AI roadmap a key feature of their due diligence.