The World Economic Forum (WEF) recently explored how tech innovations are transforming private equity— while also examining the risks and limits of emerging tools like AI and machine learning.
At Sonata One, advancing private markets by combining scalable technology with expert human insight to solve industry-wide problems is at the very heart of what we do. The WEF article highlights several important themes, which we explore further here.
Technology as a tactical advantage
In a challenging economic climate—marked by political uncertainty, volatile markets, and rising regulatory scrutiny—the WEF highlights how firms are leveraging technology to gain a competitive edge. From AI and machine learning speeding up and sharpening due diligence and investment decisions, to robotic process automation and blockchain streamlining operations, the goal is clear – work smarter, move faster, and unlock more value.
Reality check: adoption is uneven
While the ambition is clear, the reality is uneven. The WEF cites a recent S&P Global study showing 41% of firms are still in early adoption stages, with only 20% at an advanced or fully integrated level. This matches what we see across private markets: despite buzz around AI, blockchain, and tokenisation, many firms still rely on spreadsheets, PDFs, and fragmented processes. Fundraising, reporting, valuations, and onboarding often run on disconnected systems with inconsistent data formats.
The opportunity—and the risks
Applied well, AI’s potential is huge. The WEF notes AI can identify nearly 200 relevant companies in the time it takes a junior analyst to assess one—an undeniable strategic advantage.
Yet the risks should not be underestimated. Delegating decisions that require expert judgment—investment due diligence, asset valuation, ESG assessments—to AI raises concerns about data quality, governance, and oversight.
The WEF flags risks around opaque workflows, cybersecurity, unreliable data, and regulatory pressure. Without proper safeguards, technology could cause more harm than good. The low adoption rate suggests managers share these reservations.
Getting it right: utility, people, and data
Unlocking the transformational potential of technology starts with three essentials:
- Clear use cases: Tech only works when aligned with “strategic goals”—solving real problems and delivering measurable value.
- Human oversight at critical points: Technology must be complemented by human judgment where nuance, regulation, and context matter. The WEF notes the importance of compliance forums, responsible-use policies, and skilled teams interpreting outputs. In our experience, human support remains vital during investor onboarding and relationship management—reflecting both the relative complexity and partnership driven nature of the industry.
- Structured, standardised data: Clean, consistent data is the foundation of meaningful insight. The WEF echoes what we see firsthand: a lack of industry-wide standards remains a major barrier.
An industry-wide approach Is essential
While smart tech deployment offers competitive advantages, a rising tide lifts all ships. When the industry collectively delivers better, consistent data and value metrics, capital will flow.
The WEF highlights this in ESG, where transparent, verifiable data builds trust and improves exit opportunities. More broadly, as private markets democratise further to HNW, retail and 401(k) investors, demand for clearer data, disclosures, and streamlined workflows will only grow.
Collaboration around industry-wide standards, reporting frameworks, and scalable digital infrastructure is therefore just as critical as innovation in the tools themselves.
Our approach at Sonata One
This is precisely our approach at Sonata One –bringing the industry together in one platform, underpinned by common standards and expert human support. Whether onboarding investors, monitoring risk, or ensuring compliance, we focus on leveraging technology to drive scale and efficiency, without losing sight of where people make the difference. And this is where we see the potential for real tech-enabled transformation.
To find out more about how we’re combining scalable technology together with expert human support to change the paradigm of private markets investing explore our solutions or contact our team.
