This impossible to quantify inner voice grown from personal experience is decreasingly playing a role in investment decision making, said Patrick Stakenas, a senior research director at Gartner. The traditional pitch experience will significantly shift by 2025 as VC and private equity (PE) investors turn to leveraging AI and data science insights for due diligence.

The wheels of this transformation are already in motion. Stock markets around the world have opened their doors to AI-led funds, called quant funds and startups like Motherbrain and SignalFire are applying data to venture capital around the world.

The Project One hedge fund, on the other hand, is a pure AI model. The brainchild of Andrew Sobko and Rami Jachi uses an alpha-learning AI model which continues to adapt and update itself without human involvement for manual data collection and processing.

"Through our study of praxeology, there is no guessing," said Sobko in a statement. "We are fully aware of the facts associated with human behavior and involvement, which is why we moved to eliminate the error-prone component from our proprietary algorithm."

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AI to find the next big unicornInvesting in startups is just as, if not more, risky than investing in the money market.

Around 90% of startups in India fail within the first five years of their inception, according to a report by the IBM Institute of Business Value and Oxford Economics. Thats enough to give investors pause when mulling over whether or not to invest in a new business.

This way, models using AI can predict if a startup is investment worth before the fundraising process even begins.

One such machine learning system is the EQT Ventures-backed Motherbrain. It applies its algorithm to historical data in order to identify promising investment candidates. It uses a combination of factors, which are included but not limited to, financial information, web ranking, app ranking and social network activity. EQT Ventures already makes 30% of its decisions through the data-analysis platform.

Such startups also solve the problem of finding interesting investment targets before anyone else. InReach Ventures, a UK-based VC firm, developed a model in-house to help find new and upcoming businesses. What used to be a handcrafted job has become significantly scalable. You become 10 times more productive, InReach founder Roberto Bonanzinga told the Financial Times.SEE ALSO:The first-ever leaders summit of the QUAD may be another signal that it's ready for something more formal

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Gartner predicts 75% of VCs will be using AI instead of their gut feel to make decisions by 2025 a path th - Business Insider India