Do we need AI DD if the target doesn't use AI?

Yes, but the scope changes.

If the target doesn't use AI, the assessment focuses on AI readiness: data infrastructure quality, team capability, and which AI opportunities would create value post-acquisition. This tells you what the AI investment will actually cost and what returns to expect. Without this, your value creation plan is guessing.

Many PE firms use this readiness assessment to build more accurate 100-day plans. It answers the questions your operating partners will ask: how clean is the data, how capable is the team, and what will it take to get AI running after close.

Learn about AI readiness assessments for portfolio companies →