Below are key highlights from our Private Equity HR/TA Roundtable discussion in New York City, May 2026.

We recently brought together a group of talent and portfolio operations leaders from top private equity and venture firms for a candid conversation on how AI is reshaping human resources and talent acquisition.

Instead of focusing on theoretical use cases, the discussion emphasized the actual resources firms are deploying, how expectations are evolving, and where the significant operational challenges and bottlenecks exist.

1. The Portfolio CFO Talent Crunch

  • CFO Turnover & Upgrading: Firms continue to see massive CFO turnover across their portfolios, driven by talent being outgrown, a lack of strategic thinking, and insufficient creativity in navigating longer private hold periods. While Portco CFO compensation is at an all-time high, recruiting them out of active investments has actually become easier. It has, however, remained difficult to get them over the line, as they typically have multiple opportunities.
  • Build Around vs. Replace: The consensus is that patching holes around an underperforming CFO rarely succeeds. Instead, firms are increasingly standing up internal portfolio FP&A leaders and capabilities simply to buy themselves time while they hunt for a truly strategic CFO hire. Some firms find that the faster they replace the CFO after an acquisition, the better the outcome.
  • The Assessment vs. Referencing Balance: Many are using formal assessment tools such as GH Smart, Summit, and Hogan to evaluate motivation, IQ, and critical-thinking skills. But there’s an ongoing debate about whether they should be used as strict criteria for hiring decisions or primarily for onboarding and development. Deep back-channel referencing has been identified as a crucial complement to prevent an over-reliance on assessment scores.

2. How Private Equity Talent Teams Are Using AI Today

  • AI as a Research/Admin Support Partner: Attendees are heavily using AI for candidate research, slide development, and organizing information. Claude Enterprise is praised for its Outlook integration and content generation capabilities, with many firms actively switching from ChatGPT Enterprise to it.
  • In Recruiting and Talent Search: AI proves effective for quick sourcing sprints, but it often favors candidates from larger companies. Tools like Fireflies, Granola, and Metaview are commonly used for interview transcription, although regulatory compliance can vary by firm. The rise in resume misrepresentation due to AI has led many organizations to revert to mandatory in-person interviews. There are more stories of Portcos hiring fake candidates, and of tech executives’ overreliance on AI to execute a search, only to fail.
  • Shifting Expectations of Search Partners: Human Capital leaders want to know which search firms are leveraging AI and using data more effectively for faster, higher-quality sourcing, assessment, and overall delivery. They’re actively asking the question, and their expectations of search partners are shifting. There’s concern that most search partners are lagging and not utilizing AI effectively throughout their processes. The notable exception cited was a firm that developed its own custom LLM, built on its proprietary people data, enabling intelligent candidate matching.
  • The Premium on Human Expertise: There’s also a growing sense that these tools will equip internal teams to do more in-house. Consequently, talent leaders are doubling down on the perceived value of search partners with real expertise and deep relationships, as the human side becomes ever more important. There’s concern that most search partners are not utilizing AI effectively throughout their processes. The notable exception is a firm that developed its own custom LLM, built on its proprietary people data, enabling intelligent candidate matching.

3. AI Tools Private Equity HR & Talent Leaders Are Using

  • AI Platforms: Claude Enterprise, ChatGPT Enterprise
  • Talent Search & Sourcing: Harmonic (AI-driven Pitchbook alternative), Juice Box, Hello Sky, Verdant
  • Assessments: GH Smart, Summit, Hogan
  • Interview Recording & Transcription: Fireflies, Granola, Metaview, Otter.ai

4. The Risk of Skill Erosion & Fragmented Governance

  • AI Over-Reliance Among Juniors: A major concern is junior staff leaning too heavily on AI for financial modeling without understanding the underlying mechanics. One way to address this is to revoke Claude access for certain staffers until foundational skills are demonstrated. This parallels the “lost classes” post-COVID, with no deal experience. Good judgment has never been more important in junior hires.
  • Governance & AI Sprawl: Firms encouraging AI experimentation see fragmented, siloed tool use across large organizations and independent AI-built workflows lacking unified governance. An AI committee was cited as one effective way to keep efforts coordinated.
  • AI’s Impact on Roles & Headcount: Lower-level finance and operational roles will shrink, but there’s caution against cutting heads too quickly. Invoking the Jevons Paradox, it was noted that technology has historically made industries more productive, not less, thereby driving increased growth and hiring. Top AI-adopting FP&A professionals are becoming more strategic rather than redundant.

The Future of AI in PE HR & Talent Acquisition

AI is moving faster than the governance, hiring practices, and talent development strategies at most firms. The upside is obvious, but the real risk is building teams that look incredibly efficient on the surface but are completely hollowed out underneath.

The firms making actual headway here are pairing technology adoption with real accountability, ensuring employees know how to do the work manually before handing it off to a machine, and challenging juniors to explain how they arrived at their answers.

Our biggest open question is how to build a bench for the future. When the junior roles that used to train and develop tomorrow’s leaders are the very ones being automated first, figuring out where the next generation of critical thinkers comes from is the real challenge. Our methods for assessing their potential for future success are also still evolving.