Reconceptualizing Work With AI

The AI conversation has shifted. What used to be a productivity question is now a portfolio question. The firms that get it are reconceptualizing their work around AI — strategy and workforce planning done in the same breath.

Scott EnglerSync Executive Partners · 2026-05-15

The AI conversation has shifted. It is no longer a productivity question. It is a portfolio question. The firms that understand this are reconceptualizing their work around AI at the organizational level — and doing their AI strategy and workforce planning in the same breath.

Key Themes

The AI Gap Is Now Measurable (McKinsey/Bain)

42% of CFOs plan to grow AI spending by 30%+ over two years; but most companies are buying AI tools without rebuilding the workflows those tools are supposed to improve. The ROI gap is widening.

PE Is About to Eat Its Own Software Portfolio (Bloomberg/CNBC)

Vista and Thoma Bravo managing LP fears about horizontal SaaS exposure; rules-based software doing horizontal work is most at risk; vertical SaaS with proprietary data holds up better against AI displacement.

Blackstone and KKR as AI Distribution Channel

Both firms in active discussions with Google to deploy Gemini across portfolio companies. AI buying decisions are moving upstream from the portfolio company to the sponsor level — changing the decision dynamics significantly.

AI Doesn't Augment — It Replaces (Cloudflare/Block)

Cloudflare cut 1,100 people (20% of staff) in a record revenue quarter. 150,000+ tech jobs cut in 2026 with AI cited as the primary driver. AI bolted onto an unchanged org chart is overhead, not transformation.

The Real AI Trade Is Infrastructure (KKR/Blackstone)

Hyperscalers spending $500B on AI infrastructure in 2026; the biggest PE returns over the next decade are likely in picks and shovels, not applications. The infrastructure layer is where durable value is being created.

The Manager Gap Will Be Visible by Year-End (West Monroe)

Sponsor AI capability is now part of the portfolio company value creation plan. LP fundraising will disproportionately reward AI-capable sponsors. The gap will be measurable by Q4 2026.

Scott's TakeThe CFOs who will matter most over the next three years are the ones who can do two things simultaneously: automate the finance function's own workflows AND govern the AI transformation of the broader business. That requires a different kind of finance leader — one who sees the operating model as the asset, and AI as the infrastructure that rebuilds it.

AIWorkforcePE StrategyOperating Model2026

Frequently asked questions

How is AI changing finance leadership in PE-backed companies?

AI is shifting the CFO role from data production to data interpretation. Finance functions that previously spent 70 percent of capacity on close and reporting can redirect that capacity to analysis and decision support. PE-backed companies that adopt AI-native finance infrastructure gain a structural advantage in reporting speed, scenario modeling, and board communication — all of which directly affect multiple at exit.

What financial data capabilities should a PE-backed company build before a transaction?

Before a transaction, a PE-backed company should have a single source of truth for financial data, contract-level P&L visibility, a documented EBITDA bridge, and reporting infrastructure that can respond to buyer data requests within 72 hours. The data room is where preparation either protects or loses purchase price — and the cost of building the infrastructure is always less than the value it protects.