Fund groups are rapidly adopting artificial intelligence in their valuation work while holding more private market assets, according to Deloitte's latest fair valuation survey, as reported by InvestmentNews. The findings arrive as regulatory attention to both valuation controls and AI use is increasing.
According to Deloitte's announcement on PR Newswire, the 24th Fair Valuation Pricing Survey was conducted in summer 2026 and drew responses from 95 registered investment company fund groups of varying sizes. By assets under management, 20% of participants manage more than $500 billion, 29% manage $100 billion to $500 billion, 14% manage $50 billion to $100 billion, 23% manage $10 billion to $50 billion, and 14% manage less than $10 billion, according to a report on the survey by KuCoin News.
The headline figure on AI is that 77% of participants said they had started using AI or expanded their use over the past year. Deloitte listed applications including supporting research and documentation, preparing valuation memoranda, enhancing quality review and assisting with reporting. Among fund groups using AI, 40% apply it to fair valuation, 33% to financial reporting and investor communications, and 31% to fund accounting operations, per the Deloitte release.
The survey also points to growing private market exposure. Deloitte reported that private equity allocation increased to 51% and private credit stood at 33%. Among fund groups holding private equity, 46% reported an increase over the past 12 months, up from 26% in 2025, while 66% said they had increased private credit positions.
On pricing practices, 69% of fund groups received a spot price or range of prices for private credit from third-party providers, up from 66% in 2025, according to Deloitte. Some 48% refresh fair valuations daily using observable market inputs, but only 4% perform a full valuation update each day.
Regulators are watching the area. According to a Mayer Brown summary of the SEC's 2026 examination priorities, the agency highlighted risks tied to AI and related cybersecurity issues, including registrants' use of AI technology, automated investment tools and trading algorithms. Plante Moran's summary of the priorities says examiners will focus on methods and controls for fair valuation of illiquid assets, particularly in volatile markets and for assets held by private credit funds and funds with extended lock-up periods.
The SEC also held a Private Markets Roundtable on March 4, 2026, covering valuation practices, liquidity management and investor protection, with opening remarks from Chairman Paul Atkins and Director Brian Daly, according to a summary published by AIMA. That summary also describes Rule 2a-5, which governs valuation practices and governance, including board oversight, fund-specific policies, annual risk assessments, back testing, independent pricing-service input and valuation committees.
Paul Kraft, Investment Management Marketplace Excellence Leader and Lead Partner at Deloitte & Touche LLP, said in the release that private-market investing is entering a more complex phase. He said the results underscore the need to pair innovation, including daily pricing and AI, with disciplined governance, independent challenge and human-led oversight.