There’s no shortage of fields which could end up being seriously impacted by AI, but VC Marc Andreessen thinks his own might be one of the last ones to fall.
Andreessen, the co-founder of the prominent venture capital firm Andreessen Horowitz (a16z), recently shared his perspective on the resilience of venture capital to the ongoing AI revolution. His comments, which highlight the deeply human element inherent in successful venture capital work, suggest that even in a future dominated by AI, certain uniquely human skills will remain indispensable.
“Every great venture capitalist in the last 70 years has missed most of the great companies of his generation,” Andreessen observed. “So, the great VCs have a success record of getting, you know, two out of 10 or something of the great companies of the decade.”
He continued, “If it was a science, you could eventually have somebody who just dials in and gets 8 out of 10. But in the real world, it’s not like that. You’re in the fluke business.”
Andreessen highlighted the inherent “intangibility,” the “taste aspect,” and the crucial role of “human relationships” in venture capital: “A lot of it is…a logical analysis like, ‘Who are these people (entrepreneurs)?’ ‘How do they react under pressure?’ ‘How do you keep them from falling apart?’ ‘How do you keep them from going crazy?’ ‘How do you keep *yourself* from going crazy?’ You know, you end up being a psychologist half the time.”
He concludes with his belief about the enduring human element in venture capital: “So, it is possible—I don’t want to be definitive—but it’s possible that that is quite literally timeless. And when, you know, when the AI is doing everything else, that may be one of the last remaining fields that people are still doing.”
Andreessen’s argument hinges on the idea that venture capital success isn’t solely about crunching numbers or identifying market trends. It’s about understanding people, navigating complex interpersonal dynamics, and offering support during periods of intense pressure. These are skills that, at least for now, remain uniquely human. While AI can undoubtedly augment certain aspects of venture capital, such as market research and due diligence, the core of the profession—judging character, building trust, and providing mentorship—remains deeply rooted in the human experience. His use of the word “fluke” underscores the often unpredictable nature of startup success, suggesting that even with perfect data, predicting the next big thing remains a gamble.
Andreessen’s words offer a glimmer of hope for the enduring value of human intuition and connection, in spite of the rapidly advancing progress in AI. While AI might excel at optimizing processes and analyzing data, the uniquely human qualities of empathy, judgment, and the ability to navigate the nuances of human interaction may well become even more valuable in the future, particularly in fields like venture capital. Only time will tell if Andreessen’s prediction proves true, but his perspective provides valuable food for thought about the limitations of AI and the irreplaceable value of human skills in a rapidly changing world.