Cherry's Investment Thesis on AI

THE EDGE

Podcast: The Edge by Cherry Ventures Episode: Season 2 Episode 3

Welcome back to another episode of The Edge by Cherry Ventures, a new seasonal podcast rebranding ourselves as we discuss new, edgy topics about the future and AI. We’re joined today by Lutz Finger and Jasper for a live and uncut conversation.

To begin, Lutz and Jasper outline their approach to understanding AI, breaking it down into six key areas. They categorize AI's impact into two main types: evolutionary and revolutionary. Evolutionary AI improves existing workflows and everyday processes, while revolutionary AI introduces entirely new ways of doing things. Evolution begins with the concept of augmentation, where AI enhances daily tasks by simplifying repetitive workflows. Examples include using AI to automate booking processes, manage vacation requests, and streamline various administrative tasks. Though AI will replace some jobs, it will also create new opportunities and more efficient workflows. This shift necessitates adaptation and retraining for those affected. The value created by AI often benefits company owners and investors, highlighting the need for a fair distribution of these benefits.

AI (specifically large language models) has the ability to make everyone smarter by improving information retrieval. While AI enhances information access, human oversight remains essential to ensure the accuracy and relevance of the retrieved data. The conversation then turns to potential business models that could emerge from AI evolution. One significant area is the replacement of traditional search engines like Google. Professions like auditing, tax advising, and engineering, where professionals occasionally need to reference large volumes of documents, can benefit greatly from AI's ability to quickly and accurately retrieve relevant information. Lutz and Jasper also highlight the complexities of ensuring data security and quality, particularly for large enterprises.

Then, the conversation shifts to discuss the revolutionary potential of AI. First, future AI bots in providing personalized assistance and advice while acting as real sales consultants. AI could also streamline clunky, complicated interfaces by showing only the buttons and features relevant to the user’s current task, based on historical usage patterns and user personas. Ai-generated content is the next step for social media, too. Finally, new processing power could open up an entirely new suite of applications to improve decision making.

Links: Learn more about Cherry Ventures: www.cherry.vc