Accordion, a leading AI and data-powered financial consulting firm, has released its 2025 report, AI in the PE-Backed Finance Function, highlighting a significant disconnect between private equity (PE) sponsors and their portfolio company CFOs regarding AI adoption. Based on a survey of 200 PE sponsors and 200 PE-backed CFOs, the report identifies barriers to AI implementation and provides actionable strategies for CFOs to align with sponsor expectations and drive value.
98% of PE sponsors prioritize AI adoption, but 68% of CFOs are unsure where to start.
83% of sponsors push for immediate AI investment; 74% of CFOs delay due to market uncertainty.
99% of sponsors favor AI in discrete finance tasks like automated close and cash flow forecasting.
CFOs face “AI paralysis” due to intimidation, not skepticism, per Accordion’s findings.
Report outlines five steps for CFOs to adopt AI effectively in PE-backed firms.
AI adoption critical for value creation and exit success in private equity.
The survey reveals that 98% of PE sponsors have directed CFOs to prioritize AI adoption to enhance value creation. However, 68% of CFOs report hesitation, primarily due to uncertainty about where to begin or whom to consult. This gap, described as “AI paralysis” by Accordion CEO Nick Leopard, stems from CFOs’ lack of technological expertise in a rapidly evolving landscape. “Sponsors are under immense pressure to drive more value,” said Leopard. “They believe portfolio-wide AI adoption is critical to value creation.”
A key disconnect lies in timing: 83% of sponsors urge immediate AI investment, viewing longer hold periods as an opportunity to implement AI solutions. Conversely, 74% of CFOs believe sponsors prefer delaying AI adoption until tariff-related market uncertainties subside. This misalignment risks delaying value-enhancing initiatives critical for portfolio companies preparing for exits.
Nearly all sponsors (99%) advocate for AI adoption through targeted finance workstreams, such as automated close, cash flow forecasting, and invoice-to-cash automation. These areas offer high-impact opportunities for efficiency gains. “CFOs should start by applying AI to discrete and inefficient finance workstreams,” said Kyle Roemer, Accordion Managing Director and US Head of Data & Analytics. This approach allows CFOs to achieve quick wins while building toward strategic transformation.
Accordion’s report provides five actionable steps for CFOs to bridge the AI adoption gap:
Target High-Impact Areas: Focus on manual processes like close acceleration and cash flow forecasting for immediate AI impact.
Measure ROI: Evaluate AI initiatives for cost reduction, margin improvement, and decision-making efficiency to align with sponsor goals.
Leverage Data: Use existing strong data infrastructure for quick wins while improving enterprise data quality for long-term success.
Choose Trusted Partners: Select third-party providers with proven expertise in PE-backed environments to ensure effective AI implementation.
Align People and Processes: Combine AI with redesigned workflows and upskilled teams to maximize productivity and agility.
“CFOs are still in the early stages of adopting AI but if they don’t act fast (and intelligently) they’ll run the very real risk of falling too far behind,” Roemer added. These steps aim to help CFOs navigate AI adoption strategically, ensuring alignment with sponsor expectations.
Accordion’s survey underscores the urgency for PE-backed CFOs to embrace AI to meet sponsor demands and drive value. By focusing on practical, high-impact applications and strategic partnerships, CFOs can overcome intimidation and position their firms for success in a competitive market.
Accordion sits at the heart of private equity—where sponsors and CFOs meet. Through financial consulting rooted in data, technology, and AI, we help clients drive value. Our services support the Office of the CFO across all stages of the investment lifecycle—including foundational accounting, strategic financial planning and analysis enhancement, CFO-led performance, transaction support, and turnaround and restructuring solutions. Accordion is headquartered in New York with ten offices around the globe.
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