🤖 VentureAI and the rush to regulate

Good morning and welcome to the latest issue of neonpulse!

Here are the AI headlines making waves:

🌊  Venture capital AI

🌊 The rush to regulate

Let’s get into it!

VentureAI

Always looking for ways to get an edge over the competition, venture capital funds and private equity firms are hard at work finding ways to use the latest AI tools to find acquisition targets and start-ups for investment.

And according to Pär Edin, an innovation leader at KPMG, the use of AI is providing a significant edge to the early adopters of the new tech, allowing them to move faster than ever when evaluating new deals.

"If you can train or use a model that gets a lot of efficiency first, you’ll get an advantage in that particular area of the business that is harder for a second mover to do,” said Edin. “It’s about getting there first for each and every particular use case."

Here’s how a handful of investment groups are using AI:

• Moonfire utilizes AI to evaluate approximately 50,000 companies each week, considering factors such as a founder's experience and potential returns on investment

• PitchBook has created an AI-driven "VC exit predictor" that evaluates the likelihood of a company going public or being acquired, boasting a 75% accuracy rate

• Hedge Fund Coatue is using generative AI to efficiently analyze sell-side research, earnings transcripts, and pitch decks, distilling the essential information into concise briefings that have allowed the team to make investment decisions in record time

• Venture capital firm Headline leverages generative AI to assess and compare investment targets based on factors like web traffic and new users, allowing them to focus on the companies with the greatest growth potential

But before you start to worry that AI is going to replace all the jobs at hedge funds and venture capital firms…

Which would force the displaced workers to buy slightly smaller yachts…

It’s important to note that this new tech isn’t going to remove humans from the equation entirely.

While industry analyst group Gartner predicts that AI and data analytics will shape more than three-quarters of venture capital and early-stage investments by 2025, experts like Mathias Schilling, a founding partner at hedge fund Headline, believes that AI will act as a co-pilot to human investors, enhancing decision-making rather than threatening the traditional role of a venture capitalist.

The Rush To Regulate

In response to the potential dangers of AI, the European Union and the United States have taken a significant step in shaping the future of AI by collaborating on the development of a “code of conduct” for the transformative new technology.

By working together, the aim is to establish guidelines that will govern the development and deployment of AI systems, ensuring they align with societal values and human rights.

According to Margrethe Vestager, the European Commission's Executive Vice-President, this joint effort is crucial in fostering trust and creating a common framework for AI.

"It’s important that we shape the rules of the game so that our values are at the center and to ensure that we have a framework in which AI works for the benefit of people," said Vestager.

The proposed code of conduct aims to address various aspects of AI, including data protection, privacy, transparency, and accountability, and also emphasizes the importance of ensuring fairness and non-discrimination in AI systems.

By setting clear guidelines, the EU and the US are hoping to foster an environment where innovation can flourish while safeguarding individuals rights and societal well-being.

Looking for a simple way to 10X your writing output?

JasperAI eliminates the struggle of staring at blank screens praying for inspiration to strike, allowing you to effortlessly create high quality content for blogs, social media, websites, and more.

I use Jasper for crafting social media captions, high-converting ad copy, and most importantly, to write new pickup lines that I use to keep my girlfriend around (that’s how dating works, right?)

Take Jasper for a free test drive here.

Cool AI Tools

🔗 Boolv - Makes content creation a breeze

🔗 Dewstack - Effortlessly craft, manage, and host intelligent docs that respond to user queries in real-time

Want to feature your product in front of thousands of AI investors, developers, and enthusiasts?

Learn more about our advertising opportunities by clicking here.

And now your moment of zen

That’s all for today folks! We hope you enjoyed today’s newsletter, and we’ll see you bright and early tomorrow!