- Now is still the right time to embrace the AI revolution, according to venture capital firm Insight Partners.
- A recent Insight survey showed that 72% of its portfolio companies use AI in their workflows.
- The company advised founders to take an “explore, walk, run” approach to automating parts of their business.
Insight Partnersone of the largest and most active venture capital and private equity firms of the last decade, advises founders: artificial intelligence is here to stay.
In a two-page note shared with Business Insider, Insight released a prediction that, while somewhat expected, carries weight for the future of the industry: “AI was the buzzword in 2024 and will lead nowhere leaves next year. »
A recent Insight survey showed that 72% of its portfolio companies are using AI, and 36% of them are allocating new budgets specifically to these initiatives. His portfolio includes Acethe Israeli cybersecurity company that turned down a $23 billion sale to Alphabet over the summer, and Weights and biasesa machine learning operations company used by OpenAI to track and compare its experiments.
Insight said automation has the potential to increase productivity and simplify tasks across functions, but acknowledged that founders might feel overwhelmed when trying to integrate these new technologies into their workflows. The firm advised a staged approach.
“As AI and GenAI assistants continue to evolve, founders should take an ‘explore, walk, run’ approach, starting with simpler automated tasks and gradually integrating more advanced workflows,” the memo says . “Adopting a ‘human in the loop’ framework, combining AI and human monitoring, will be essential as these systems are still maturing.”
With automation playing a critical role across all business functions, Insight has highlighted three areas that startups need to focus on: knowledge management, content generation and customer insights. For developers, coding wizards can accelerate code generation and reviews, enabling faster market entry and a wider product range. In marketing, automated copy and content testing can improve engagement, while AI-powered tools in customer support can speed up response times and improve access to the company’s knowledge base.
Insight also identified an area where human connection is unbeatable. He encouraged founders of growth-stage companies to take an interest in events – from intimate meetings with potential buyers to larger industry events – as a way to connect with customers and increase demand. This will help businesses “stand out in a world increasingly flooded with AI-driven digital awareness,” the memo said.
Read the letter Insight shared with leaders.
All,
Loyal Field Notes readers, as we approach 2025, we wanted to share some ideas on high-impact strategies to effectively scale your business in the year ahead. Our Insight Onsite team, comprised of more than 130 professionals with deep operational expertise, is here to support you on your growth journey and help you capitalize on opportunities related to AI, go-to-market (GTM) strategies ), to talents and beyond. We hope you find the following useful and, as always, contact your portfolio manager or on-site contact if you have any questions.
The shift to AI is imminent and leading to advanced evolution and sophistication among entrepreneurs
AI was the buzzword in 2024 and is not going anywhere next year. AI has the potential to drive the next wave of innovation, providing opportunities for growth. For startups looking to scale with AI in 2025, the focus should be on high-impact applications that improve efficiency and empower teams. Key areas for immediate gains include developer productivity, QA/testing, and marketing content creation.
Automation can simplify repetitive tasks across functions: for developers, this means faster code generation and reviews; for marketing, automated copy and content testing improves engagement strategies; and for customer support, AI-powered tools streamline response times and improve knowledge management.
Talent acquisition and sales also benefit from AI, with tools like “Copilot” helping with candidate sourcing, onboarding and customer relationship management, improving personalization, productivity and scalability.
Tracking progress and refining AI strategies over time allows businesses to scale effectively, positioning them for sustainable growth and competitive advantage in the market.
Focus on leveraging emerging AI technologies
The idea of integrating generative AI (GenAI) into business can be intimidating, but it also has the potential to impact every function of a business. In a recent survey of portfolio companies, we found that 72% of portfolio companies are using artificial intelligence, and 36% of them are creating net new budget for these initiatives.
To effectively scale with AI in 2025, startups must prioritize practical GenAI use cases that can have a big impact in areas such as knowledge management, content generation, and business intelligence. customers. GenAI can enable efficient product development by automating tasks such as coding, design and rapid prototyping, leading to faster market entry and a greater variety of products.
In market research, GenAI supports data-driven decisions by analyzing unstructured data sets, including customer interviews and competitor reviews, to reveal actionable insights. Additionally, for go-to-market (GTM) efforts, AI can streamline lead scoring, personalize customer engagement, and optimize sales campaigns, making the process scalable and significantly improving customer satisfaction and loyalty. customers.
AI-driven automation presents a huge opportunity to increase productivity and streamline operations. As AI and GenAI assistants continue to evolve, founders should adopt an “explore, walk, run” approach, starting with simpler automated tasks and gradually integrating more advanced workflows. Adopting a “human in the loop” framework, combining AI and human monitoring, will be essential as these systems are still maturing.
To differentiate themselves, founders must focus on creating unique, data-driven workflows that add clear value and improve user experience, preparing their business for sustainable growth in a technology-enhanced market. AI. We created a blog post exploring this subject earlier this spring.
Develop your GTM engine on solid foundations and personalized commitment
For early-stage founders, especially B2B SaaS companies, who want to scale effectively in 2025, it is essential to ensure the GTM strategy and engine is working before scaling up. Once you’ve defined Product Market Fit (PMF), it’s critical to continue validating that your product creates real, differentiated value for your buyers (and that your messaging communicates this effectively).
It’s not just about having a great product with cutting-edge features. Having a customer-centric mindset is essential; Products that solve a pressing problem, resonate authentically, and are easy to use will drive organic word-of-mouth and advocacy, which are invaluable (and profitable) assets for growth. Add to that high retention rates thanks to a strong PMF and effective onboarding and you have the foundation for effective and sustainable scaling.
For businesses in the growth stage and beyond, it is essential to increase demand by building on this foundation by leveraging in-person events and connections. Turn to personal, high-impact engagements to stand out in a world increasingly flooded with AI-driven digital outreach. Businesses can make meaningful connections and gain direct insight into their audience’s needs by hosting intimate meetings with target buyers or participating in larger industry events.
However, AI-based awareness cannot be ignored – but don’t expect AI to do everything for you. It’s imperative to first find a proven approach that works, then augment it with AI to make scaling easier. personalized effective awareness raising.
Know and understand your brand to hire key talent
In 2025, early-stage founders must approach talent acquisition with a compelling, cohesive narrative that highlights their company’s unique value and culture. Given the competitive landscape, your company story should resonate through every touchpoint, especially on the company website and the CEO’s personal brand.
Candidates are increasingly detailed, relying not only on public content but also on checking personal references to understand a company’s values and trajectory. An authentic, well-defined narrative that reflects both the company’s mission and culture can attract high-caliber talent by demonstrating transparency, stability, and alignment with employee priorities.
Effectively managing relationships with candidates, even those who are not immediately selected, will be just as essential. With top talent in high demand, it’s important to view each interaction as part of an ongoing relationship; a candidate who may not be the right fit today could become an ideal fit as the company evolves. Keeping the doors open with a courteous and professional approach to rejections can foster goodwill, making it easier to reconnect with talented people down the line.
By cultivating a respectful and thoughtful recruiting process, founders can create a network of potential future recruits who feel positively about the brand, regardless of the immediate outcome.