黑料社区

RIYADH: Artificial intelligence is reshaping venture capital worldwide 鈥� not just as a thematic investment opportunity but as a core enabler of operational transformation. 

黑料社区 exemplifies this evolution, as AI adoption in the Kingdom is not only accelerating but is also closely aligned with the Vision 2030 strategy for economic diversification.

鈥淪audi VCs are actually ahead of many regions in AI adoption for deal sourcing and due diligence,鈥� said Charles Kickham, managing director of Cayenne Consulting, told Arab News.

鈥淭hey鈥檙e using platforms like Affinity and Dealroom that incorporate AI for market intelligence and portfolio tracking,鈥� he added.

This shift reflects a broader global trend. According to data from Gitnux, 42 percent of venture capital firms worldwide now use AI for deal sourcing, and 68 percent believe the technology will significantly improve decision-making accuracy. 

Kickham attributes 黑料社区鈥檚 competitive edge to the institutional scale and advanced digital infrastructure of its sovereign investment entities. 

鈥淭he sovereign wealth funds there have massive data advantages that smaller Western VCs don鈥檛 have,鈥� he said, adding: 鈥淭hat kind of access gives them an edge in identifying patterns and tracking early-stage ventures with high scalability potential.鈥�

Vision 2030 drives premium valuations

In the Kingdom, this is more than an operational upgrade 鈥� it is a policy-aligned transformation. 鈥淭he cultural factor that鈥檚 unique is the emphasis on AI that aligns with Vision 2030鈥檚 diversification goals,鈥� Kickham explained. 

The Cayenne Consulting managing director added that Saudi investors are specifically hunting for AI startups that can reduce oil dependency, and this targeted strategy is influencing local deal dynamics and startup valuations.

鈥淚鈥檝e seen this drive premium valuations for fintech and logistics AI companies by 20 to 30 percent compared to similar deals elsewhere,鈥� he added.

A report from MAGNiTT in June emphasized the growth of AI in the Kingdom, with the platform added that the technology was the main driver of investment activity both in the private and public markets in the US and other mature markets in 2024.

It added that based on its proprietary data, MAGNiTT expects AI funding to double in 2025 due to increased investor attention to innovative startups.

Global VC firms turn to automation

Globally, AI鈥檚 integration into the venture process is advancing across regions and firm sizes. In India, for instance, venture capital firms are rapidly deploying AI-based systems to streamline investment workflows and sharpen competitive advantage. 

鈥淎I has redefined the front end of our venture workflow, from deal sourcing to diligence, giving us unprecedented scale, speed, and precision,鈥� said Rahul Agarwalla, managing partner of SenseAI, in an interview with Entrepreneur in June.

鈥淎t SenseAI, our proprietary engine surfaces technical founders months before they raise, using a live signal graph of research papers, product launches, and social media activity,鈥� he added. 

Gitnux reports that 75 percent of top-tier VC firms now rely on proprietary deal-scanning tools and analytics platforms. 

Additionally, 50 percent of firms use natural language processing-based sentiment analysis during due diligence to assess market dynamics and founder behavior in real time.

AI-powered dashboards have also delivered measurable gains in portfolio management, with 70 percent of firms reporting improvements in operational efficiency.

The adoption of AI tools is not limited to large-scale firms. Even mid-sized and emerging market players are leveraging accessible platforms to enhance decision-making. 

鈥淲e鈥檙e seeing strong interest from mid-market firms in Asia and the Middle East that don鈥檛 have internal data science teams but want the same capabilities,鈥� said Clyde Anderson, CEO of GrowthFactor.ai. 

鈥淭hey鈥檙e looking for AI tools that are usable without deep technical knowledge,鈥� Anderson told Arab News.

Both Kickham and others cautioned that while AI offers significant leverage, human insight remains critical, particularly when evaluating founder qualities and long-term potential.

鈥淭he main challenge is talent retention,鈥� Kickham said of the Saudi market. 鈥淪audi funds can identify great AI deals but struggle to provide the technical mentorship that Silicon Valley VCs offer.鈥� 

To address this, Saudi investors are increasingly collaborating with international funds. 鈥淭hey鈥檙e compensating by co-investing with international funds more frequently than other regional markets,鈥� he added. 

鈥淚t鈥檚 a pragmatic approach 鈥� leveraging external technical strength while continuing to build internal capability.鈥�

Talal Al-Jabri, founder of the recently launched Wyld VC, has pinpointed the impact of talent in boosting AI.

During the launch of the company鈥檚 first AI-native fund in May, Al-Jabri said: 鈥淭he region鈥檚 greatest gap is AI talent.鈥�

Al-Jabri went on to say that the GCC is leading the charge in catalyzing an AI revolution 鈥� through massive infrastructure investments, advanced research and model deployment, and transparent, innovation-forward regulation.

Human judgment still key in venture

Agarwalla emphasized that AI cannot replace the human element central to venture capital decision-making. 

鈥淢odels can鈥檛 assess founder resilience, ethical integrity, or long-term vision 鈥� only repeated human interaction can,鈥� he said. 

鈥淎I gives us leverage; human judgment gives us conviction.鈥� In his view, the firms that find the right balance between automation and experience will shape the next generation of venture outcomes. 

鈥淰enture capital is paid to underwrite non-linear futures and that鈥檚 a deeply human endeavor rooted in taste, contrarian insight, imagination, and pattern-breaks that AI cannot model or predict,鈥� Agarwalla added.

While challenges remain, including talent shortages, infrastructure constraints, and limitations in local language models, the trajectory for AI in venture capital is clear.

鈥淭he expectation now is real-time, data-backed decisions,鈥� Anderson noted. 鈥淎I isn鈥檛 replacing investors 鈥� it鈥檚 becoming table stakes for modern investment processes.鈥�

In markets like 黑料社区, where policy, capital, and technology are converging, the impact is particularly profound. 

鈥淭hey鈥檙e not just following global trends鈥� they鈥檙e aligning capital and technology to national policy, which sets them apart,鈥� Kickham said. 

As AI becomes embedded in the global VC toolkit, such alignment may offer a lasting strategic advantage in a highly competitive, data-driven future.