**London**: In a recent ION Influencers chat, Shahbaz Alam of AWS explored how technology, including generative AI, is transforming private equity firms and their portfolio companies through operational efficiencies, subscription models, and supplier relationship management, while emphasising responsible AI and customer-centric strategies.
In a recent episode of the ION Influencers fireside chat, Shahbaz Alam, the Head of Private Equity for EMEA at Amazon Web Services (AWS), elaborated on how technology can enhance value creation and operational improvements within private equity portfolio companies. The discussion, moderated by Giovanni Amodeo, delved into several integral elements surrounding the use of technology particularly in the context of generative AI and supplier relationship management (SRM).
Shahbaz Alam, with an extensive background spanning over 20 years in the technology sector, provided insight into his career trajectory, which ranges from data centres to technology consulting, leading him to his current role at AWS where he harnesses technology to drive value for private equity entities. Alam noted that AWS collaborates with around 175 private equity firms globally and supports approximately 11,000 portfolio companies. He underscored the synergy between AWS and these entities, as many have adopted AWS as their principal technology provider.
The conversation explored the specific needs of private equity firms that vary across different industry sectors. A significant focus was placed on transitioning traditional software companies to subscription-based and cloud-based solutions, a move that aims to enhance operational efficiencies for manufacturing firms and facilitate expansion into new markets. Alam pointed out that the journey to subscription and SaaS models involves critical milestones that necessitate a cost-effective, multi-tenant technology platform.
Reflecting on the complexities of modern data centre management, Alam shared his observations from his earlier career while contemplating future trends. He placed emphasis on the increasing relevance of cloud solutions when contrasted with traditional data centres, particularly in the context of enhancing supplier relationships through improved data management techniques.
One of the striking aspects of the chat was the discussion on the adoption of generative AI among portfolio companies. Alam described 2023 as a year marked by experimentation and the validation of proof of concepts, while projecting 2024 as a period in which these technologies would transition to more production-grade solutions. He illustrated how generative AI is being employed for various functions, including customer service enhancements and the internal optimisation of operations, thereby improving workforce efficiency by reallocating resources to high-value tasks.
Alam also addressed the regulatory landscape surrounding AI, highlighting the distinctions between European and US regulations. He reiterated AWS’s dedication to promoting responsible AI usage and adherence to local compliance standards.
For enhancing supplier relationships further, Alam discussed AWS’s strategies in fostering a customer-centric culture within portfolio companies, which are inspired by the core principles practised at Amazon. He introduced initiatives such as the “Learning from Amazon” and “Culture of Innovation” programmes, effectively demonstrating AWS’s commitment to instilling customer-obsessed methodologies into companies’ operations.
The fireside chat concluded with Alam expressing optimism regarding the future of technology in private equity. He reaffirmed AWS’s ongoing commitment to support private equity firms in their value creation endeavours through innovative technology solutions, which will likely include increasingly sophisticated uses of generative AI and improvements in unstructured supplier data analysis, assisting firms in extracting valuable insights.
Source: Noah Wire Services
