Why AI Point Solutions Fall Short

Executive Summary

Private equity (PE) firms face significant challenges in guiding portfolio companies (portcos) on AI adoption. The reliance on AI point solutions—designed for specific tasks—creates inefficiencies, silos, and escalating costs. These tools, while simple and cost-effective initially, lack scalability and fail to address enterprise-wide workflows, leading to fragmented operations and limited insights.

This report highlights the limitations of point solutions and introduces an enterprise-wide AI platform approach as a superior alternative. By unifying workflows, systems, and data, a centralized platform like Krista enables scalability, reduces complexity, and delivers actionable insights. This approach empowers PE firms to achieve operational excellence across portfolios, driving measurable ROI and long-term value creation.