Insights

You have five years to create value. Is your AI plan built for that clock?

 · 3 min read

Oliver Wyman just published a survey comparing what PE-backed and public-company CEOs are focused on, and one number is particularly relevant. 49% of PE-backed CEOs say falling behind on AI is a top three threat to their business. For public-company CEOs it’s 22%. 

The report links this to the hold period: in private equity, with about five years to create value, lagging behind with AI will show up in the exit multiple. 

 

What the survey found 

Even though only 51 of the 415 CEOs surveyed are PE-backed, their direction is clear: 

  • 67% of PE-backed CEOs put cost management in their tops three, yet 75% also name a growth lever as a priority. Cost discipline becomes the mechanism that funds growth. 
  • 49% are prioritising a redesign of roles and workflows, against 35% of public CEOs. 
  • 31% are prioritising decentralised decision-making, against 17%. 
  • 57% plan to shift the workforce mix away from junior roles within a year or two. For public CEOs it’s 38%. 

 

Where AI value is actually decided 

The redesign of roles and workflows is the part that decides whether AI pays off. When we see an AI initiative stall between pilot and EBITDA, the technology is rarely the cause. We would ask a portfolio company three questions. Which workflow is different once the AI initiative is live? Which decisions now sit with someone else? Which line in the P&L moves, and by when? If there are no changes, and people just have a new tool, the value creation plan won’t work. 

 

The junior-role question 

The shift away from junior roles is a focal point. It’s one of the easiest AI savings to put in a model, which is probably why so many businesses are planning it. But entry-level roles are where future managers learn the business. Public-company CEOs rank succession and leadership development much higher (65% vs 37%) than PE-backed CEOs. This may have to do with hold-period economics as well as a longer view. 

The report adds that CEO turnover is rising. If the junior layer is thinned in the first three years, there are few internal successors by year five, which is exactly when a buyer asks who will run the company next. Portfolio CEOs need to think about how they plan to grow their next leaders if there are fewer juniors to grow. 

 

Plan for a mid-hold refresh 

Because exits have stalled, holds are running longer than planned. Bain’s midyear report puts the implied capital cycle at about seven years. Also, a deal that once needed about 5% EBITDA growth now needs around 12% for a 2.5x return over five years. On top of this, the cost and capability of AI are moving fast. Therefore, the plan written at entry is likely out of date before exit, and it is worth planning for a mid-hold refresh from the start. 

 

What boards should ask 

PE-backed CEOs say their boards have become more involved in finance (41% vs 26%), operations (25% vs 12%), and AI oversight (29% vs 22%). Public boards are leaning the other way towards strategy, governance, and succession. So, PE boards are where AI initiatives can be held to account, but only if directors agree what they are checking. Each AI initiative must be linked to a changed workflow, redefined decisions, and the P&L. 

Where do you see the biggest gap between the AI plan at entry and what is delivering? 

 

Sources: Oliver Wyman Forum, “The PE CEO Agenda: Moving at the speed of AI” (July 2026); Bain & Company, Private Equity Midyear Report (June 2026).