Private Equity’s Software Thesis Is Facing It’s First Real AI Test

Private Equity’s Software Thesis Is Facing Its First Real AI Test.

For years, software was the ideal buyout target — predictable ARR, scalable margins, and repeatable value-creation playbooks. Nearly a third of PE capital flowed into the sector during the 2010s.

AI is now challenging those assumptions.

Development cycles are compressing. Product differentiation is eroding faster. Capabilities that once justified premium multiples can now be replicated — or enhanced — at a fraction of the time and cost. Public software valuations have already reflected this shift, and private markets are beginning to catch up.

But this moment isn’t just about disruption. It’s about positioning. And you will see the subtle hints with new leadership transitions.

PulseConnect stands at the lead of durability and transformation — built on traditional infrastructure and relationships, yet powered by more than 15 years of proprietary data. That depth enables smarter connectivity between carriers and distribution, turning historical insight into forward-looking advantage.

In a market moving from “own the software” to “own the intelligence,” platforms that can operationalize real data — not just code — are where sustainable value will be created.

The playbook isn’t disappearing. It’s evolving, and we are at the head of the evolution.

Pulse Point Anne Marie Davis Keith Gelles
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