Artificial intelligence and the future of fund decision-making
Large language models and AI tooling are changing how investment opportunities are assessed. What does that open up, and where does it fall short?
Language-model tools have entered fund screening processes. The question is no longer whether they are used, but at which stage and with how much reliance.
Where they genuinely help
- Summarising a high volume of inbound proposals and spotting the ones outside the investment thesis
- Extracting data from financial documents and normalising their format
- Finding comparable companies for a valuation benchmark
Where they should not be relied on
Judging a team. A model can tell you what a founder wrote; it cannot tell you how they behave in a difficult meeting. Any fund that automates that part loses exactly the thing that makes an investment decision.
The model makes screening faster; a person still makes the decision.
