Generative AI is no longer a theoretical technology. It's here and now, and moving fast. Private funds are moving quickly to figure out how best to use it. During this episode, we explore with Dr. Mohammad Rasouli practical considerations for private funds as they consider how to adopt and implement AI, including issues of risk management, security and confidentiality, and practical implications for human capital.
Dr. Rasouli is an AI researcher at Stanford University and founder/CEO of AIx2, a firm focused on helping funds tackle the transformative nature of AI. During our conversation, we examine how asset managers can responsibly integrate generative AI into their operations and ultimately their investment functions, the challenges and opportunities presented by this new technology, and how increasingly sophisticated AI models will reshape virtually every aspect of how private funds attract, invest and manage capital.
Peter Antoszyk: Hello, and welcome back to another episode of private market talks, where we take a deep dive into the dynamic world of private markets with industry leaders. I'm your host Peter Antoszyk. Today we're exploring a field that's transforming not just technology, but also the fundamental ways in which we invest and manage capital: artificial intelligence.
Joining us is Dr. Mohammad Rasouli, whose insights are shaping the future of AI for asset managers. We'll explore how AI is integrating into private funds, the challenges and opportunities it presents and what the future might hold as these technologies become increasingly sophisticated.
Dr Rasouli is founder and CEO of AIX2. He is a Stanford AI Researcher, where he also co-taught "empirics of marketplaces". He is a former Microsoft engineer and an ex-McKinsey consultant from the New York Office and in that role he worked with some of the largest PE funds to help with their AI transition. So not only is Dr. Rasouli an active researcher, but he also has the practical experience of working with funds to adopt and implement AI responsibly.
So tune in as we uncover the depths of AI 's role in revolutionizing the landscape of private capital investing. As with all our episodes, you will find a full transcript of this episode, along with other helpful information at privatemarkettalks.com and be sure to subscribe. And now, my conversation with Dr. Mohammad Rasouli. Dr., welcome to Private Market Talks.
Mohammad Rasouli: Thanks, Peter. It's great to be with PMT.
Peter Antoszyk: Before we get into sort of the detail of uses and how to adopt and implement AI, perhaps you could take a minute and level set our listeners as to what we mean by AI and the differences between, you know, predictive and generative AI.
Mohammad Rasouli: That's a great question. That's a question that I often explain when I talk to fund managers or in my courses to executives. Basically, what we mean by AI is when the machine takes the capability to synthesize data and bring actions to us. That's different in this definition with what we used to know in last 10, 20 years with digital and digital transformation, which is mostly a dashboard of data. Taking us to the next level and being able to take the action, machine taking over to the next step and a complete result, that's what the AI means. Now, there has been this generative versus predictive AI that, especially with the growth of the LLMs, large language models, and ChatGPT and topics in others, the generative one has become more commercialized these days.
The main difference is that the Generative AI is around the ideas of large natural language processing, which is basically generating a sentence; generating a piece of something similar to what we had before. Now LLMs are about generating language, but we have Generative AIs for images, we have for videos, for other things. The way these generative technologies work is that they take a sample of a lot of existing like dictionaries and Wikipedias and others about language or many, many photos of cats and dogs and then they make a new essay, a new writing or a new image of a cat or a dog that never existed before. Right? In this sense, they are generative, but there is always these other categories of AI which are less commercialized, because right now, OpenAI has found a way to commercialize Generative AI for especially not natural language processing and languages. But in the future, the predictive AIs will be also potentially commercialized, and those predictives are about predicting something in the future. For our audience, probably predicting the stock market price tomorrow or a week from now is like one good example, right? You can also predict the chance of success of investing in an asset. You can predict the chance of an M&A success that you can do. You can predict an exit strategy, like what is the price in this exit strategy? Everything that is about the future and you want to predict, that's part of the predictive AI algorithms.
Generative AI, From Theory To Practice With AIx2's Mohammad Rasouli
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