Data Science Set to Replace ‘Gut Feelings” in Investment Decisions

For most of investment history, the most successful investors purportedly have the ability to make sound financial decisions from having a good ‘gut feeling’. But with the onset of artificial intelligence (AI) and other data-science-equipped technology, the role of this ‘impossible-to-quantify inner voice’ will be greatly reduced as increased advanced analytics capabilities will steer most such decision-making to modern, platform-based quantitative processes. In fact, analysts at Gartner expect that more than 75% of venture capital and early-stage investor executive reviews will be informed using AI and data analytics by 2025. Interestingly, much of this analysis is expected to hinge on the personality traits and work patterns required for success vs. those possessed by the leadership team of a given venture. We really are headed toward a world powered by AI decision-making.