Artificial intelligence is without a doubt one of the hot buzzwords in the business world right now. There is a reason for that. Its because we are at a moment in time when artificial intelligence, long a thing for the movies, is truly “coming to life” right in front of our eyes.
I have been fortunate enough to get to see demonstrations of some really interesting artificial intelligence solutions over the past year. I didn’t study those just because they are the “in” topic.
Rather, I studied those solutions because I have no doubt that artificial intelligence will alter know small business funding is delivered. After over 50 different demos, I can tell you that is definitely the case.
How artificial intelligence will impact equity investing
One of the biggest struggles for any equity investor is being able to review the vast number of requests (deal flow) for funding that they get in a reasonable amount of time.
Most investors will tell you that they have to listen to over 100 pitches just to find one startup to invest in. With that the case, investors are always on the lookout for technology solutions that can help them improve their process workflow.
One example of a company looking to improve the process is Growth Enabler. Growth Enabler leverages artificial intelligence to more accurately connect startups with investors that match their criteria. When a startup can ensure that they are connecting with an investor that is likely to have at least a preliminary interest in their idea then that enables the whole process to speed up.
If you’d like you would like to hear more about Growth Enabler be sure to check out episode #25 of the SouthFound podcast.
How artificial intelligence will impact small business lending
I recently delivered a presentation to a $600M organization where I discussed all the trends that will be or are already impacting the financial industry. In their industry, over 72% of income comes from lending activities of which small business lending is seeing a 26% annual growth rate.
If you have looked over my background, you might recall that I have spent most of my professional career as a Chief Lending Officer. Providing loans to consumers and businesses is something I know very well and if there is any process that could use improvement it is the loan process.
So, how can artificial intelligence help?
By removing the “human element” from loan decisions, artificial intelligence has the ability to provide data and input, real-time, into loan officer decisions to ensure more consistent loan decisions.
What are your thoughts around “AI”? Do you think it will improve our lives and are you worried “SkyNet” will take over the world?