Every private equity partner knows the feeling, that moment when you realize a fundamental shift in the market has quietly gained momentum while you were focused on other value creation initiatives. We're experiencing one of those pivotal moments right now with AI workforces, teams of artificial intelligence agents and tools that can autonomously perform tasks traditionally handled by humans, from customer service to data analysis. The implications for portfolio company performance are staggering, as these AI-driven teams have the potential to dramatically improve efficiency, scalability, and decision-making across industries. Unlike the incremental improvements we've seen from traditional SaaS tools, AI workforces represent a complete reimagining of how businesses scale operations while maintaining the quality and personalization that drives premium valuations.
In this article, co-authored by Tony Ko, SVP of Customer at Qurrent, we explore the paradigm shift brought on by AI workforces, described by Qurrent CEO Colin Wiel as being "as transformative as the advent of television was to radio." In this co-authored piece, we'll examine why the DIY approach to AI implementation is a costly trap, how managed AI services are reshaping operational leverage, and what the real-world success at companies like Pacaso means for your portfolio.
Traditional SaaS solutions have served portfolio companies well as operational tools, but as Mr. Ko explains, conventional software tools are "inherently deterministic and often require humans to use them to get value out of it," functioning as discrete point solutions designed for predefined actions.
AI workforces operate on an entirely different paradigm. These autonomous digital teammates are predicated on learned behavior, continuously adapting and refining their capabilities through what Mr. Ko describes as "iterative, feedback-driven methodology." This represents a significant departure from the often protracted and resource-intensive development cycles characteristic of conventional software.
What makes this particularly compelling for private equity is the customization and defensibility potential. Mr. Ko emphasizes that AI workforces are highly customizable, deeply embedded within a company's unique operational fabric, and leverage existing technological infrastructures to execute complex, bespoke workflows. This creates what he calls a proprietary advantage that confers a distinct competitive edge that off-the-shelf SaaS offerings simply cannot replicate.
Analysis of the DIY approach reveals a critical risk that many portfolio companies face when evaluating AI investments. While standard software becomes stable after an initial period, Mr. Ko points out that an AI workforce is probabilistic by nature, always retaining an element of unpredictability.
This creates a "costly dilemma" for companies pursuing a Do-It-Yourself approach, "dramatically inflating the true Total Cost of Ownership (TCO)." In-house teams inevitably choose between two inefficient paths:
Both paths lead to the same destination: a significant drain on capital, time, and focus, with hidden costs that overshadow any perceived savings from a DIY approach.
Frank Scarpelli, CEO & President at Sparc Partners shared: "We've seen this pattern repeatedly across businesses we work with. Companies that try to build every capability in-house often find themselves distracted from their core value proposition. The most successful transformations happen when leadership teams know when to build, when to buy, and when to partner. AI workforces clearly fall into the partnership category for most businesses."
In response to these challenges, Mr. Ko identifies that a new class of specialized partners is emerging, like Qurrent, offering a managed service model that directly addresses the hidden costs and complexities of in-house AI development. Rather than providing tools that leave implementation burden and adoption on portfolio companies, these partners build, integrate, and manage custom AI agent solutions.
This approach offers a more predictable and ultimately lower TCO by deflecting the burdens of constant oversight and platform maintenance. Mr. Ko identifies three key advantages of successful managed models:
This paradigm shift allows companies to focus on their core business, confident that their AI workforce will remain effective and reliable.
Pacaso, a pioneer in luxury home co-ownership, provides a compelling blueprint for AI workforce ROI that speaks directly to private equity value creation metrics. The company has strategically deployed a Qurrent-powered AI workforce for over a year, with CEO Austin Allison highlighting three critical areas of demonstrable return:
These examples underscore Mr. Ko's central thesis: AI workforces transcend mere tooling, they are strategic assets capable of driving significant growth, elevating customer experience, and optimizing operational efficiency. For business leaders, implementing AI workforces that proactively integrate and scale represents a potent avenue for new value creation levers and superior operating leverage.
This approach effectively de-risks AI investments by moving beyond fragmented, generic toolkits toward integrated, intelligent workforces that continuously learn, adapt, and deliver measurable impact.
"What excites me most about AI workforces from an operating partner perspective is their ability to solve the scale-versus-quality dilemma that plagues so many of our portfolio companies. We often see businesses where growth comes at the expense of the customer intimacy that differentiated them in the first place.” said Mr. Scarpelli. AI workforces promise to preserve that white-glove service while enabling the kind of exponential scale that drives step-function EBITDA growth—that's exactly the operational leverage that creates outsized returns for our LPs."
These examples underscore that AI workforces transcend mere tooling; they are strategic assets capable of driving significant growth, elevating customer experience, and optimizing operational efficiency. For private equity firms, investing in portfolio companies that proactively integrate and scale AI workforces represents a potent avenue to new value creation levers and achieve superior operating leverage. This approach effectively de-risks AI bets by moving beyond fragmented, generic toolkits towards integrated, intelligent workforces that are continuously learning, adapting, and delivering measurable impact. The future of value creation in private capital is inextricably linked to this transformative shift, where AI agents become an indispensable component of the enterprise, yielding superior ROI and sustainable competitive advantage.
About the Co-Author:
For over two decades, Mr. Ko has been driven by a vision to transform businesses through the power of technology. A seasoned leader with a deep understanding of data, product, and AI, Mr. Ko has consistently sought out opportunities to apply emerging technologies to solve complex, real-world problems. Prior to joining Qurrent, as the Global Managing Director of AI at Slalom, he spearheaded the development of the company’s global AI practice, building and leading high-performing professional services teams that delivered impactful AI solutions to enterprise clients worldwide. As SVP of Customer & GTM at Qurrent, Mr. Ko continues to champion the transformative potential of AI, empowering businesses to thrive in an increasingly competitive landscape.
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