Billionaire investor and former Facebook exec Chamath Palihapitiya believes that AI will bring about radical changes to the role of a venture capitalist. During a recent episode of the “All-In Podcast,” hosted Palihapitiya and others, he discussed how AI could impact VCs, stating that there is a “reasonable case to make” that the VC job might even cease to exist. He predicts that changes to the industry sparked AI could lead to VCs being replaced “an automated system of capital against objectives.”
Palihapitiya, who is the CEO of Silicon Valley VC firm Social Capital, explained that AI productivity gains could result in millions of startups comprised of teams of one or two people, ultimately causing investors to make a higher proportion of smaller bets. This, in turn, would profoundly change the role of the venture capitalist.
The advancement of generative AI has caused concerns about job losses across various industries, including the financial sector. While AI is expected to enhance worker productivity and take on tedious tasks, there are also concerns that the technology could eliminate or reduce some junior roles.
Representatives for Palihapitiya did not comment on Insider’s request for information outside of normal working hours. The conversation around AI and its impact on jobs is ongoing, with the potential for dramatic changes across several professions.