Advances in have found an application in the decision-making process of venture capital firms. VC firms look through thousands of startup proposals every year, and only a small percentage of the proposals reviewed get the green light. AI can help venture capital firms improve their analysis of these startups, and makes it easier for firms to consider exponentially more potential business opportunities all over the world.
The amount of data being generated from smartphone and social media use is overwhelming, and will only continue to grow in the coming years. Enter AI. AI algorithms can sift through the mountains of available data and synthesize it down to metrics that venture capital firms can use in making their investment decisions.
AI uses machine learning, which is the ability to automatically learn from the data it gathers without being specifically programmed to learn it, to achieve these results. Think Hal9000 from “2001: A Space Odyssey” (only without the malevolent intent). Venture capital firms are not only using AI systems to improve their own return on investment, they’re investing more and more money in the companies who develop AI systems.
The use of artificial intelligence is booming and being developed in nearly every business industry from retail to the auto industry to real estate. In the past year, businesses looking to AI have focused on preparation. Companies are integrating artificial intelligence into their business models and processes to enable them to take advantage of new technologies in the future.
VC firms can also benefit from the boon AI technology can be to aspiring entrepreneurs. AI can help those seeking investors learn how to make their companies more appealing to VC firms. Business owners can use data to modify their plans and adjust their business models without laying out a hefty sum to hire a data specialist. All-in-all, artificial intelligence is a powerful tool for venture capital firms, and has the potential to be a lucrative investment.
GSX Ventures is a real estate development and consulting firm which uses its in-house site selection, architectural design, site planning and rezoning expertise to monetize or increase the value of real estate assets throughout the country.