Insight Partners, one of the largest and most active venture capital and private equity firms, has issued a comprehensive two-page memo to its portfolio companies outlining strategic guidance for incorporating artificial intelligence in 2025. The firm’s message is clear: AI was the defining buzzword of 2024 and will continue to dominate the business landscape in the coming year.
According to a recent survey conducted by Insight Partners, 72% of its portfolio companies are already using AI, with 36% allocating new budgets specifically for AI initiatives. The firm’s impressive portfolio includes high-profile companies like Wiz, the Israeli cybersecurity firm that declined a $23 billion acquisition offer from Alphabet, and Weights & Biases, a machine-learning operations company utilized by OpenAI for tracking and comparing experiments.
The memo acknowledges that while automation has tremendous potential to boost productivity and simplify tasks across business functions, founders may feel overwhelmed when attempting to integrate these emerging technologies. To address this concern, Insight Partners recommends a “crawl, walk, run” approach—starting with simpler automated tasks and gradually incorporating more advanced workflows. The firm emphasizes the importance of a “human-in-the-loop” framework that combines AI capabilities with human oversight, recognizing that these systems are still maturing.
For early-stage companies looking to scale with AI, Insight Partners identified three critical focus areas: knowledge management, content generation, and customer insights. The firm highlighted specific applications across different business functions: coding assistants for developers can accelerate code generation and reviews, enabling faster market entry; automated copy and content testing in marketing can enhance engagement strategies; and AI-powered customer support tools can improve response times and knowledge base accessibility.
Interestingly, the memo also identified one area where human connection remains irreplaceable. Insight Partners encouraged growth-stage company founders to invest in events—from intimate gatherings with potential buyers to larger industry conferences—as a means of connecting with customers and scaling demand. This strategy helps companies “stand out in a world increasingly flooded with digital, AI-powered outreach,” according to the memo. The firm’s Insight Onsite team of 130+ professionals with deep operational expertise stands ready to support portfolio companies in their AI adoption journey.
Key Quotes
AI was the buzzword of 2024 and isn’t going anywhere in the next year.
This opening statement from Insight Partners’ memo establishes the firm’s core thesis that AI adoption will accelerate rather than plateau, signaling to portfolio companies that AI investments should be strategic priorities rather than optional experiments.
As AI assistants and GenAI continue evolving, founders should take a ‘crawl, walk, run’ approach — starting with simpler automated tasks and gradually incorporating more advanced workflows.
This guidance from Insight Partners provides a practical framework for AI adoption, acknowledging that founders may feel overwhelmed and need a phased implementation strategy rather than attempting wholesale transformation immediately.
Embracing a ‘human-in-the-loop’ framework, which combines AI with human oversight, will be essential as these systems are still maturing.
The memo emphasizes the importance of maintaining human oversight in AI systems, recognizing current technological limitations and the need for balanced implementation that leverages automation while preserving quality control and judgment.
Stand out in a world increasingly flooded with digital, AI-powered outreach.
Insight Partners acknowledges a potential downside of widespread AI adoption—the commoditization of digital outreach—and advises founders to differentiate through authentic human connections at events and intimate gatherings with customers.
Our Take
Insight Partners’ memo represents a maturation moment for the AI industry. Rather than breathless hype about revolutionary transformation, we’re seeing sophisticated investors provide nuanced, practical guidance. The 72% adoption rate is particularly telling—it suggests AI has crossed the chasm from early adopters to mainstream business tool. However, the emphasis on “human-in-the-loop” frameworks reveals an important truth: we’re still in the early stages of understanding how to effectively integrate AI into business operations. The firm’s warning about “AI-powered outreach” flooding the market hints at an emerging challenge—as everyone adopts similar AI tools, differentiation becomes harder, not easier. The most successful companies in 2025 may be those that use AI for internal efficiency while maintaining authentic human connections externally. This balanced approach could define the next phase of AI adoption, moving beyond the “AI for everything” mentality toward strategic, targeted implementation.
Why This Matters
This memo from Insight Partners carries significant weight for the AI industry and startup ecosystem. As one of the most influential venture capital firms, Insight’s guidance shapes how hundreds of portfolio companies—and by extension, thousands of other startups—will approach AI adoption in 2025. The 72% adoption rate among portfolio companies signals that AI has moved from experimental to essential for competitive businesses.
The firm’s emphasis on a measured “crawl, walk, run” approach addresses a critical challenge: AI implementation anxiety among founders who feel pressure to adopt cutting-edge technology without clear roadmaps. This pragmatic guidance could prevent costly mistakes and failed AI initiatives that result from rushing implementation.
Perhaps most significantly, Insight’s acknowledgment that human connection remains irreplaceable despite AI advances offers a nuanced perspective often missing from tech industry discourse. This balanced view—embracing AI for efficiency while preserving human touchpoints for relationship-building—may define successful business strategies in an increasingly automated world. The memo also validates the growing trend of dedicated AI budgets, signaling that AI spending will become a standard line item in corporate planning rather than an experimental expense.
Recommended Reading
For those interested in learning more about artificial intelligence, machine learning, and effective AI communication, here are some excellent resources:
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Source: https://www.businessinsider.com/vc-firm-insight-partners-how-to-incorporate-generative-ai-2024-11