ChatGPT vs Vertical AI solutions: Why every fund should have subscription to GPT Enterprise?
Step one: Experience ChatGPT Enterprise Solution
The first, immediate step for every firm is to get foundational AI tools into the hands of your team. We recommend subscribing to ChatGPT Enterprise and Microsoft 365 Copilot for Finance.
These platforms are inexpensive, secure, and integrate seamlessly with the tools you already use, like SharePoint, Outlook, and your cloud servers. The goal here isn't to revolutionize your due diligence process overnight. It's to build an AI-ready culture and harness first order use cases at low cost and also explore their limits toward your need for vertical AI solutions.
Encourage your team to experiment. Here are some guideline and examples we see in other funds:
Choose use cases that are simple yet frequent at your firm, especially those which are limited to writing in plain language.
Example Use cases are :
- Drafting emails and investor communications.
- Preparing for meetings by summarizing previous notes and call transcripts.
- Generating initial ideas for thematic write-ups.
- Cleaning up and formatting basic data sets.
Step 2: Understand the Limits & Deploy Specialized Solutions
As your team uses these tools, they'll notice their boundaries. General-purpose AI has clear limits for the complex work of private investment:
Quality & Nuance: The output for large, complex reports like a full due diligence analysis often lacks the required depth and accuracy. These tools are not for accurate calculations, industry specific logics and reasoning, and complicated reporting.
Lack of Integration: They don't connect to specialized private market CRMs or other bespoke software central to your workflow, or data bases used for this industry such as PitchBook, Capital IQ, Dakota, Crunchbase, etc.
No Workflow Optimization: You can't define reusable templates or sophisticated, multi-step processes for tasks like deal screening or portfolio analysis.
This is where specialized AI solutions come into the picture. For your most critical and value-additive workflows, you need AI agents trained specifically on your firm's data, methodologies, and objectives. These custom-trained systems can tackle the complex tasks where general AI falls short.
Step 3: Where Specialized AI Delivers Real Value
Specialized AI can automate and enhance the core functions of a private investment firm with a high degree of accuracy and impact. Below are some of the most powerful vertical AI use cases.
Legal Document Review: Instantly analyze NDAs, credit agreements, and purchase agreements. The AI can extract key clauses, flag risks, and compare terms against your firm's precedent positions.
Modeling & Financial Analysis: Generate complex LBO models from simple prompts. AI agents can automate sensitivity analysis, run multiple scenarios in seconds, and audit formulas for errors.
Deal Screening: Automate the top of your funnel. AI can review CIMs, summarize them into a standardized one-pager format, and create scorecards based on your IC criteria in a consistent way with business logics and integrate into your CRM and workflow.
Deal Sourcing & Execution: Specialized AI streamlines the entire deal execution process, from automatically screening CIMs to analyzing datarooms and building financial models, while integrating into your CRM and workflows. This allows your team to evaluate opportunities faster, reduce diligence risk, and make investment decisions with greater conviction.
Portfolio Management & Operations: AI automates performance monitoring, unlocks insights from your firm's internal knowledge base, and accelerates the creation of reports and board materials. This frees up your team from manual work, enabling them to focus on strategic initiatives and drive value across your investments.
See our use cases page on AIx2 website for more real world examples. If you want to learn more, feel free to book a time with us.