Over 75% funding decisions to be driven by AI and data analytics by 2025: report

Gartner has forecast that AI and data science-equipped VC or private equity (PE) investors will become commonplace in the next 4-5 years, given the recent advances in data analytics and AI models. "Successful investors are purported to have a good gut feel-- the ability to make sound financial decisions from mostly qualitative information alongside the quantitative data provided by the technology company," Patrick Stakenas, senior research director at Gartner said in a statement. Stakenas said this inability to quantify inner voice grown from personal experience is decreasingly playing a role in investment decision making. AI models can help investors by determining the viability, strategy and potential outcome of an investment in an early-stage startup, based on past investments, revenue growth, market penetration, consumer sentiment and their industry experience. "AI tools will be used to determine how likely a leadership team is to succeed based on employment history, field expertise and previous business success," added Stakenas.