Is your portfolio AI-ready? Why data strategy is the key to value creation.

The latest research from Digital Realty on AI adoption in Europe reveals a clear message: businesses that fail to integrate AI-ready data strategies risk falling behind. With 61% of European companies already embedding AI into their operations and 79% adopting a distributed data approach to comply with regulations and enhance AI capabilities, the market is moving faster than many investors anticipate. 

For private equity (PE) firms, this presents both opportunity and risk. AI is not just about efficiency—it is a key driver of valuation uplift, EBITDA expansion, and exit positioning. Yet, despite the appetite for AI-driven growth, 57% of IT leaders cite infrastructure limitations as a major blocker, and 52% admit they lack the right investment in data systems.  What this means for investors and portfolio companies 

1. AI-ready data infrastructure is a must-have, not a nice-to-have

   Many PE-backed businesses are under pressure to scale quickly, meet aggressive targets, and maximise exit value. However, fragmented data ecosystems and legacy systems frequently hinder AI adoption and reduce scalability. Investing in a single source of truth is the foundation for AI-driven insights and long-term value creation. 

   
   

2. AI maturity varies - due diligence is key

   While AI offers a potential 20-30% valuation uplift, not all implementations are equal​. Investors must assess whether AI is genuinely embedded into a company’s data strategy or merely a superficial feature. The due diligence process should scrutinise data quality, governance, and infrastructure scalability to ensure AI is a value enabler, not an integration headache. 

   
   

3. Data localisation is now a competitive advantage

   With increasing regulatory scrutiny, particularly in Europe, 72% of companies are aligning AI strategy with data location strategy. This is no longer just a compliance issue—it’s a value driver. Businesses with clear, well-managed data ecosystems are better positioned for cross-border expansion, customer trust, and AI-driven automation.  

DataDiligence: de-risking AI for PE investors  

At DataDiligence, we work with PE firms to bridge the gap between data due diligence, AI strategy, and value realisation. From pre-investment AI assessments to post-acquisition AI scaling and exit readiness, our approach ensures that AI investments translate into measurable EBITDA impact.

The reality is clear: AI is already reshaping valuations, but its success depends entirely on the strength of the underlying data. Investors who take a proactive, structured approach will be the ones unlocking the full financial potential of AI.