Apollo Global Management now screens every new software investment for potential disruption from artificial intelligence. The firm developed an assessment framework that divides software into 12 to 14 categories. This system ranks each category by its specific vulnerability to AI technology.
Apollo also applied this strategy retroactively to its existing portfolio to identify and mitigate risks. The initiative addresses investor concerns that rapid technological advances could render current business models obsolete. Rob Bittencourt, Apollo’s head of thematic investing, describes the AI transition as the most profound platform shift the industry has ever faced.
The move follows similar AI risk reviews by other large asset managers, including Blackstone Inc. and Ares Management Corp. These firms are evaluating heavy exposure to the software sector amid fears of technological displacement.