Streamlining private equity operations - eliminating PDF data entry
By Bernard Lam on the 31st July 2023Private Equity Artificial Intelligence
In the current digital landscape, private equity firms are now recognising the need to embrace new technology. A key driver for this trend is the need to improve the investment data pipeline to remain competitive. The pipeline involves gathering accurate data, developing insights from the data and distributing these insights to stakeholders. Document processing stands out as a notable development for PE firms, leveraging artificial intelligence to extract data from complex documents, at scale.
PE firms can use this technology for extracting data from annual reports and financial statements, which can reduce operational cost and increase efficiency. This can help address some of the core challenges faced by firms; such as improving data accuracy, ensuring data consistency and adapting to changes in the industry.
Improving data accuracy
The integration of solutions allow for accurate extraction of data into a structured and manageable format. Traditionally, data entry is done manually which is both time-consuming and labour-intensive, with room for human error. With the use of AI-based technology, PE firms can increase productivity and focus on generating returns.
Ensuring data consistency
As information flows from many sources and teams, data consistency is essential for operating effectively. Integrating solutions with existing platforms enables end-to-end automation of complex processes, guaranteeing consistent data across the entire company.
Adapting to industry changes
The financial industry is constantly changing and global trends can shift rapidly. In such a dynamic landscape, PE firms must be able to quickly and efficiently adjust to these market developments. One example of this is the increasing focus on ESG data and how investments are impacting the environment. The format for ESG-related documents can vary widely due to a lack of global standardisation and smart use of document processing offers a significant advantage, as it can process these unstructured documents without needing pre-configuration.
There are many benefits for PE firms to integrate new solutions and embracing this technology early positions firms for greater success in the dynamic and competitive financial landscape.