Advanced AI tools can model an organization's internal investment beliefs and processes. This allows investment committees to use the AI to "red team" proposals by prompting it to generate a memo with a negative stance or to re-evaluate a deal based on a new assumption, like a net-zero mandate.
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To preempt investor objections, founders should use AI to generate a critical investment memo on their own company. Prompting the AI to identify potential reasons for failure reveals weaknesses in the business plan and pitch, allowing founders to address them proactively before the meeting.
Leaders are often trapped "inside the box" of their own assumptions when making critical decisions. By providing AI with context and assigning it an expert role (e.g., "world-class chief product officer"), you can prompt it to ask probing questions that reveal your biases and lead to more objective, defensible outcomes.
The discipline of writing down your thought process is crucial for decision analysis. AI now amplifies this by creating a searchable, analyzable record of your thinking over time, helping you identify blind spots and get objective feedback on your reasoning.
WCM avoids generic AI use cases. Instead, they've built a "research partner" AI model specifically tuned to codify and diagnose their core concepts of "moat trajectory" and "culture." This allows them to amplify their unique edge by systematically flagging changes across a vast universe of data, rather than just automating simple tasks.
Go beyond using AI for data synthesis. Leverage it as a critical partner to stress-test your strategic opinions and assumptions. AI can challenge your thinking, identify conflicts in your data, and help you refine your point of view, ultimately hardening your final plan.
Log your major decisions and expected outcomes into an AI, but explicitly instruct it to challenge your thinking. Since most AIs are designed to be agreeable, you must prompt them to be critical. This practice helps you uncover flaws in your logic and improve your strategic choices.
Venture capital firms are leveraging AI tools like Google's NotebookLM to process deal flow. They ingest investment memos and legal documents to analyze them against their investment thesis and even simulate a preliminary legal review.
Instead of using AI as a compliant assistant, program it to be a challenging 'sparring partner.' Ask it to find holes in your logic or anticipate all the critical questions your CEO might ask. This transforms it from a content generator into a powerful strategic tool for preparation.
AI models tend to be overly optimistic. To get a balanced market analysis, explicitly instruct AI research tools like Perplexity to act as a "devil's advocate." This helps uncover risks, challenge assumptions, and makes it easier for product managers to say "no" to weak ideas quickly.
Beyond automating data collection, investment firms can use AI to generate novel analytical frameworks. By asking AI to find new ways to plot and interpret data inputs, the team moves from rote data entry to higher-level analysis, using the technology as a creative and strategic partner.
