Insights

Hear from Blackstone Private Equity leaders and portfolio company CEOs on our high‑conviction approach to investing in franchisors and how our value‑creation capabilities can propel growth.Hear from Blackstone Private Equity leaders and portfolio company CEOs on our high‑conviction approach to investing in franchisors and how our value‑creation capabilities can propel growth.Hear from Blackstone Private Equity leaders and portfolio company CEOs on our high‑conviction approach to investing in franchisors and how our value‑creation capabilities can propel growth.Hear from Blackstone Private Equity leaders and portfolio company CEOs on our high‑conviction approach to investing in franchisors and how our value‑creation capabilities can propel growth.Hear from Blackstone Private Equity leaders and portfolio company CEOs on our high‑conviction approach to investing in franchisors and how our value‑creation capabilities can propel growth.Hear from Blackstone Private Equity leaders and portfolio company CEOs on our high‑conviction approach to investing in franchisors and how our value‑creation capabilities can propel growth.

Hear from Blackstone Private Equity leaders and portfolio company CEOs on our high‑conviction approach to investing in franchisors and how our value‑creation capabilities can propel growth.Hear from Blackstone Private Equity leaders and portfolio company CEOs on our high‑conviction approach to investing in franchisors and how our value‑creation capabilities can propel growth.Hear from Blackstone Private Equity leaders and portfolio company CEOs on our high‑conviction approach to investing in franchisors and how our value‑creation capabilities can propel growth.

Hear from Blackstone Private Equity leaders and portfolio company CEOs on our high‑conviction approach to investing in franchisors and how our value‑creation capabilities can propel growth.Hear from Blackstone Private Equity leaders and portfolio company CEOs on our high‑conviction approach to investing in franchisors and how our value‑creation capabilities can propel growth.Hear from Blackstone Private Equity leaders and portfolio company CEOs on our high‑conviction approach to investing in franchisors and how our value‑creation capabilities can propel growth.Hear from Blackstone Private Equity leaders and portfolio company CEOs on our high‑conviction approach to investing in franchisors and how our value‑creation capabilities can propel growth.Hear from Blackstone Private Equity leaders and portfolio company CEOs on our high‑conviction approach to investing in franchisors and how our value‑creation capabilities can propel growth.Hear from Blackstone Private Equity leaders and portfolio company CEOs on our high‑conviction approach to investing in franchisors and how our value‑creation capabilities can propel growth.Hear from Blackstone Private Equity leaders and portfolio company CEOs on our high‑conviction approach to investing in franchisors and how our value‑creation capabilities can propel growth.

1. Where does AI create the most value — and where do you see disruptions?

Zemmel: We believe some of the most compelling opportunities today sit close to the infrastructure layer — what Blackstone refers to as the “picks and shovels” of AI — data centers, compute, and related areas tightly coupled to that stack. At the other end, some skilled tasks that current models can already replicate — like parts of content creation or legal workflows — face real pressure.
The biggest opportunity is the vast middle of the economy. Physical businesses, manufacturing, logistics, and retail. These are not “AI-native” sectors, but they are increasingly AI-enabled. From factory layout and robotics to marketing and supply chains, AI is enhancing how real-world businesses operate.

Stecher: As a software engineer, I see the biggest proven impact right now in software engineering’s toolkit. My teams are meaningfully more productive than they were a year ago. And I think that same dynamic will extend into drug discovery, materials science, anywhere the work mirrors software development at its core — design something, test it, refine it, repeat.

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1. Where does AI create the most value — and where do you see disruptions?

Zemmel: We believe some of the most compelling opportunities today sit close to the infrastructure layer — what Blackstone refers to as the “picks and shovels” of AI — data centers, compute, and related areas tightly coupled to that stack. At the other end, some skilled tasks that current models can already replicate — like parts of content creation or legal workflows — face real pressure.
The biggest opportunity is the vast middle of the economy. Physical businesses, manufacturing, logistics, and retail. These are not “AI-native” sectors, but they are increasingly AI-enabled. From factory layout and robotics to marketing and supply chains, AI is enhancing how real-world businesses operate.

Stecher: As a software engineer, I see the biggest proven impact right now in software engineering’s toolkit. My teams are meaningfully more productive than they were a year ago. And I think that same dynamic will extend into drug discovery, materials science, anywhere the work mirrors software development at its core — design something, test it, refine it, repeat.

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Blackstone President Jon Gray unpacks his economic weather report and why we still think 2026 is “the year of the IPO.” He also discusses how we’re navigating geopolitics, private credit and software, and AI infrastructure today.

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1. Where does AI create the most value — and where do you see disruptions?

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Zemmel: We believe some of the most compelling opportunities today sit close to the infrastructure layer — what Blackstone refers to as the “picks and shovels” of AI — data centers, compute, and related areas tightly coupled to that stack. At the other end, some skilled tasks that current models can already replicate — like parts of content creation or legal workflows — face real pressure.The biggest opportunity is the vast middle of the economy. Physical businesses, manufacturing, logistics, and retail. These are not “AI-native” sectors, but they are increasingly AI-enabled. From factory layout and robotics to marketing and supply chains, AI is enhancing how real-world businesses operate.Stecher: As a software engineer, I see the biggest proven impact right now in software engineering’s toolkit. My teams are meaningfully more productive than they were a year ago. And I think that same dynamic will extend into drug discovery, materials science, anywhere the work mirrors software development at its core — design something, test it, refine it, repeat.

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2. Software has been one of the most talked-about areas of AI disruption. How is it actually playing out?

Zemmel: Software is too big a category to paint with a broad brush. A simple analytical app layer built on commodity data is going to be easy to replace. A deeply embedded system of record with proprietary data and real workflow understanding is very hard to replace — and possibly has more AI tailwinds than headwinds. Within software, we expect much wider dispersion of returns between companies that get it right and those that don’t.

Stecher: When we diligence software companies, we look at how much proprietary data they have that can’t be replicated from what’s publicly available. That is a moat. If the business is predicated on proprietary people and proprietary data deeply embedded in workflows, AI makes their knowledge base more powerful, not more vulnerable. What’s also shifting is the interface itself — less logging into a website and entering data, more digital assistants that access information directly. Software that that simply adds an interface on top of data that anyone can access is easy to replace. Software that’s embedded in the workflow is not. The other thing I’d watch is the trust factor. Companies that customers feel they genuinely can’t run their business without — those are enduring businesses. Companies that customers tolerate only out of inertia — I don’t think they’re long for this world. New competitors that build on customer trust are going to overrun them.

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2. Software has been one of the most talked-about areas of AI disruption. How is it actually playing out?

Zemmel: Software is too big a category to paint with a broad brush. A simple analytical app layer built on commodity data is going to be easy to replace. A deeply embedded system of record with proprietary data and real workflow understanding is very hard to replace — and possibly has more AI tailwinds than headwinds. Within software, we expect much wider dispersion of returns between companies that get it right and those that don’t.

Stecher: When we diligence software companies, we look at how much proprietary data they have that can’t be replicated from what’s publicly available. That is a moat. If the business is predicated on proprietary people and proprietary data deeply embedded in workflows, AI makes their knowledge base more powerful, not more vulnerable. What’s also shifting is the interface itself — less logging into a website and entering data, more digital assistants that access information directly. Software that that simply adds an interface on top of data that anyone can access is easy to replace. Software that’s embedded in the workflow is not. The other thing I’d watch is the trust factor. Companies that customers feel they genuinely can’t run their business without — those are enduring businesses. Companies that customers tolerate only out of inertia — I don’t think they’re long for this world. New competitors that build on customer trust are going to overrun them.

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Artificial intelligence is reshaping how businesses operate, how investments are made, and how entire industries compete. But separating signal from noise can be challenging. We sat down with John Stecher, Blackstone’s Chief Technology Officer, and Rodney Zemmel, Global Head of the Blackstone Operating Team to discuss where AI stands today — and where we believe it’s headed.

1. Where does AI create the most value — and where do you see disruptions?

Zemmel: We believe some of the most compelling opportunities today sit close to the infrastructure layer — what Blackstone refers to as the “picks and shovels” of AI — data centers, compute, and related areas tightly coupled to that stack. At the other end, some skilled tasks that current models can already replicate — like parts of content creation or legal workflows — face real pressure.The biggest opportunity is the vast middle of the economy. Physical businesses, manufacturing, logistics, and retail. These are not “AI-native” sectors, but they are increasingly AI-enabled. From factory layout and robotics to marketing and supply chains, AI is enhancing how real-world businesses operate.

Stecher: As a software engineer, I see the biggest proven impact right now in software engineering’s toolkit. My teams are meaningfully more productive than they were a year ago. And I think that same dynamic will extend into drug discovery, materials science, anywhere the work mirrors software development at its core — design something, test it, refine it, repeat.

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1. Where does AI create the most value — and where do you see disruptions?

Zemmel: We believe some of the most compelling opportunities today sit close to the infrastructure layer — what Blackstone refers to as the “picks and shovels” of AI — data centers, compute, and related areas tightly coupled to that stack. At the other end, some skilled tasks that current models can already replicate — like parts of content creation or legal workflows — face real pressure.The biggest opportunity is the vast middle of the economy. Physical businesses, manufacturing, logistics, and retail. These are not “AI-native” sectors, but they are increasingly AI-enabled. From factory layout and robotics to marketing and supply chains, AI is enhancing how real-world businesses operate.

Stecher: As a software engineer, I see the biggest proven impact right now in software engineering’s toolkit. My teams are meaningfully more productive than they were a year ago. And I think that same dynamic will extend into drug discovery, materials science, anywhere the work mirrors software development at its core — design something, test it, refine it, repeat.

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1. Where does AI create the most value — and where do you see disruptions?

Zemmel: We believe some of the most compelling opportunities today sit close to the infrastructure layer — what Blackstone refers to as the “picks and shovels” of AI — data centers, compute, and related areas tightly coupled to that stack. At the other end, some skilled tasks that current models can already replicate — like parts of content creation or legal workflows — face real pressure.The biggest opportunity is the vast middle of the economy. Physical businesses, manufacturing, logistics, and retail. These are not “AI-native” sectors, but they are increasingly AI-enabled. From factory layout and robotics to marketing and supply chains, AI is enhancing how real-world businesses operate.

Stecher: As a software engineer, I see the biggest proven impact right now in software engineering’s toolkit. My teams are meaningfully more productive than they were a year ago. And I think that same dynamic will extend into drug discovery, materials science, anywhere the work mirrors software development at its core — design something, test it, refine it, repeat.

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