AI's increasing use in venture capital enhances deal sourcing , portfolio management , and due diligence , improving productivity and performance. Advanced AI tools, like large-language models, boost worker efficiency and job quality , though initial benefits may be delayed. AI's broad economic impact affects various tasks and industries, requiring updated policies to address productivity , inequality, and industrial concentration.

This study by Erik Brynjolfsson and Danielle Li is crucial for understanding the transformative effects of AI on venture capital firms and investment decisions. It reveals how generative AI enhances worker productivity and efficiency , especially for those with lower skill levels, and provides insights into AI's potential to rebuild the middle class . While immediate benefits may not appear in aggregate productivity statistics, the study highlights the long-term impact of AI on work practices and economic productivity, emphasizing the need for continuous analysis of AI's evolving role in reshaping the workforce and driving economic growth.