GV, formerly known as Google Ventures, uses an artificial intelligence solution to approve venture capital investments, Axios reports, citing sources close to Alphabet's subsidiary. While the AI that's internally referred to as "The Machine" has already been in use for years, it only started out as a support tool meant to help GV executives perform due diligence ahead of major decisions, though it now reportedly has the authority to override any investment attempts made by humans, effectively replacing the "gut feeling" part of the venture capital equation at the company.
The Machine was designed to accept a broad range of market data which it analyses and returns one of three responses – green, yellow, and red. Red means the investment can't go through, green demands the opposite, while yellow is officially meant to be interpreted as a sign for going ahead with any given investment with caution, though in practice yields identical executive behavior as red, sources claim. The three colors are a more streamlined method of yielding an investment recommendation based on a ten-point scale, with all values starting with eight being green. While GV isn't the only such company to implement AI into its decision-making process, it's believed to be the most committed to such technology across the venture capital segment.
Google Chief Executive Officer Sundar Pichai repeatedly said the Mountain View, California-based tech juggernaut is seeking to transition to an "AI-first company" and is adamant to continue embracing machine learning and general AI solutions across the board moving forward. AI is hence already an integral part of the firm's cloud strategy, as well as the market approach adopted by its consumer electronics division. The upcoming Pixel 3 lineup of Android flagships is also expected to place a large focus on AI, with the company presently also working on Google Duplex, a service designed to schedule appointments with real humans over the phone.