Last week, Alloy Partners CEO Elliott Parker joined a panel of private equity and AI leaders at the NASDAQ MarketSite for an episode of NASDAQ TradeTalks, hosted by Jill Malandrino. The conversation covered where AI adoption in private markets is actually headed and why chasing efficiency might be the wrong bet.

Elliott was joined by Bob Root, Transformation Partner at Southfield Capital; Justin Guthrie, COO at Blue Flame AI; Scott Hauck, Managing Partner at Legacy Capital; and Tim Kiely, Operating Principal and Head of Data Analytics and AI at Bay Pine.

The group covered a range of topics on AI, including:

AI doesn't generate alpha — it packages knowledge. Elliott drew a sharp distinction between using AI to work faster and using it to develop the contrarian views that actually drive returns. In private markets, he argued, alpha comes from relationships, reputation, and judgment. It doesn't come from running the same tools as everyone else.

Most companies are filming stage plays. When movies were invented, early filmmakers just pointed a camera at a stage. Elliott used the same analogy for how most organizations are approaching AI today: applying it to existing processes to do familiar things faster. The real opportunity in building entirely new business models is being largely ignored.

The three uses of AI. Elliott laid out a simple framework: AI can drive efficiency, improve customer experience, or create entirely new business models. The first two are relatively straightforward. The third is where the hardest and most valuable work is happening.

A wave is coming. Elliott closed with a direct warning to incumbents and individuals alike: the disruption heading toward large organizations is real, and most aren't moving fast enough to get ahead of it.

Watch the full episode below, or view the original on NASDAQ.