In this conversation, Phillip Mortimer discusses the transformative impact of AI on private markets, emphasizing the unique challenges posed by non-standardized data and the importance of balancing quantitative and qualitative insights in investment decisions. He highlights the significance of data privacy in AI applications and the evolving role of generative AI in automating workflows. Mortimer also addresses concerns about the future of AI, arguing against the notion of reaching an inflection point in returns due to existing limitations.

Key Takeaways

• AI is essential for navigating the complexities of private markets.
• Data scarcity and non-standardization make AI a necessity in finance.
• Human intuition remains crucial in investment decision-making.
• AI can enhance productivity but should not replace human judgment.
• Generative AI poses new data privacy challenges that must be addressed.
• Last mile SaaS can still thrive despite the rise of generalized AI.
• The future of AI is promising, with ongoing advancements in technology.
• Type 2 thinking in AI is a key area for development.
• Investors must consider the return on intelligence, not just ROI.
• AI's role in finance is to augment human capabilities, not replace them.

Chapters

00:00 Introduction to AI in Private Markets

02:56 The Role of AI in Data Analysis

06:00 Balancing Quantitative and Qualitative Insights

08:50 Data Privacy Concerns in AI

11:54 Generative AI and Last Mile SaaS

14:59 Future of AI and Investment Returns