Read a VC firm’s advice for founders about how to use AI

Insight Partners, one of the largest and most active venture capital and private equity firms of the last decade, is advising founders that artificial intelligence is here to stay.

In a two-page memo shared with B-17, Insight issued a forecast that, while somewhat expected, carries weight for the industry’s future: “AI was the buzzword of 2024 and isn’t going anywhere in the next year.”

A recent survey by Insight showed that 72% of its portfolio companies are using AI, with 36% of them allocating new budgets specifically for these initiatives. Its portfolio includes Wiz, the Israeli cybersecurity firm that declined a $23 billion sale to Alphabet over the summer, and Weights & Biases, a machine-learning operations company used by OpenAI for tracking and comparing its experiments.

Insight said automation has the potential to boost productivity and simplify tasks across functions, but acknowledged that founders might feel overwhelmed when trying to integrate these new technologies into their workflows. The firm advised a stepped approach.

“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,” said the memo. “Embracing a ‘human-in-the-loop’ framework, which combines AI with human oversight, will be essential as these systems are still maturing.”

While automation plays a vital role across business functions, Insight highlighted three areas for early-stage companies to focus on: knowledge management, content generation, and customer insights. For developers, coding assistants can speed up code generation and reviews, enabling quicker market entry and a broader range of products. In marketing, automated copy and content testing can enhance engagement, while AI-powered tools in customer support can accelerate response times and improve access to the company’s knowledge base.

Insight also identified one area where human connection can’t be beat. It encouraged founders of growth-stage companies to lean into events — from intimate gatherings with potential buyers to larger industry events — as a means of connecting with customers and scaling demand. This will help companies “stand out in a world increasingly flooded with digital, AI-powered outreach,” the memo said.

Read the letter Insight shared with execs.

All,

Loyal Field Notes readers, as 2025 approaches, we wanted to share some insights on high-impact strategies for scaling your company effectively in the coming year. Our Insight Onsite team, made up of 130+ professionals with deep operational expertise, is here to support your growth journey and help you capitalize on opportunities across AI, go-to-market (GTM) strategies, talent, and beyond. We hope you find the following helpful and as always, reach out to your Portfolio Manager or Onsite contact if you have any questions.

The shift to AI is imminent and leads to advanced scaling and sophistication among entrepreneurs

AI was the buzzword of 2024 and isn’t going anywhere in the next year. AI has the potential to drive the next wave of innovation, offering growth opportunities. For early-stage companies looking to scale with AI in 2025, the focus should be on high-impact applications that drive efficiency and empower teams. Key areas for immediate gains include developer productivity, quality assurance/testing, and marketing content creation.

Automation can simplify repetitive tasks across functions: for developers, it means faster code generation and reviews; for marketing, automated copy and content testing enhance engagement strategies; and for customer support, AI-powered tools streamline response times and improve knowledge management.

Talent acquisition and sales also benefit from AI, with tools like “Copilot” that assist in candidate research, onboarding, and customer relationship management—enhancing personalization, productivity, and scalability.

Tracking progress and refining AI strategies over time enables companies to scale efficiently, positioning them for sustainable growth and a competitive edge in the market.

Focus on leveraging emerging AI technologies

The idea of incorporating generative AI (GenAI) into companies can be daunting but it also has the potential to impact every function of a business. In a recent portfolio company survey, we found that 72% of portfolio companies are using Artificial Intelligence, with 36% of those companies creating a net new budget for those initiatives.

To scale effectively with AI in 2025, early-stage companies should prioritize practical GenAI use cases that can yield high impact in areas like knowledge management, content generation, and customer insights. GenAI can enable efficient product development by automating tasks such as coding, design and rapid prototyping, leading to faster market entry and broader product variety.

In market research, GenAI supports data-driven decisions by analyzing unstructured data sets, including customer interviews and competitor reviews, to reveal actionable insights. Additionally, for go-to-market (GTM) efforts, AI can streamline lead scoring, personalize customer engagement, and optimize sales campaigns, making the process scalable and significantly enhancing customer satisfaction and loyalty.

AI-driven automation presents a huge opportunity to boost productivity and streamline operations. As AI assistants and GenAI continue evolving, founders should adopt a “crawl, walk, run” approach—starting with simpler automated tasks and gradually incorporating more advanced workflows. Embracing a “human-in-the-loop” framework, which combines AI with human oversight, will be essential as these systems are still maturing.

To differentiate themselves, founders should focus on creating unique, data-driven workflows that add clear value and improve user experience, setting their businesses up for sustainable growth in an AI-enhanced market. We created a blog post exploring this topic earlier this spring.

Scale your GTM engine on strong foundations and personalized engagement

For early-stage founders, especially B2B SaaS companies, aiming to scale effectively in 2025, ensuring GTM strategy and engine works before you scale is critical. Once you have Product Market Fit (PMF) it’s critical to continue to validate that your product creates real, differentiated value for your buyers (and that your messaging effectively communicates this).

It’s not just about having a great product with cutting-edge features. Having a customer-centric mindset is key; products that solve a pressing problem, resonate authentically, and are easy to use will drive organic word-of-mouth and advocacy, which are priceless (and cost-effective) assets for growth. Add in high retention rates from strong PMF and effective onboarding and you’ve got the foundation for efficient, sustainable scaling.

For growth stage companies and beyond, it’s key to scale demand on top of this foundation by leaning back into events and in person connection. Look to personal, high-impact engagements to stand out in a world increasingly flooded with digital, AI-powered outreach. Companies can build meaningful connections and gain firsthand insights into their audience needs through hosting intimate gatherings with target buyers or attending larger industry events.

AI-powered outreach can’t be ignored though – just don’t expect AI to do it all for you. It’s imperative to first find a battle-tested approach that works, and then augment it with AI to help scale personalized outreach efficiently.

Know and understand your brand to hire key talent

In 2025, early-stage founders need to approach talent acquisition with a compelling and cohesive narrative that highlights the unique value and culture of their company. Given the competitive landscape, your company’s story should resonate through every touchpoint, especially the company website and the CEO’s personal brand.

Candidates are increasingly thorough, relying not only on public content but also on personal reference checks to understand a company’s values and trajectory. A well-defined, authentic narrative that reflects both the mission and culture of the company can attract high-caliber talent by demonstrating transparency, stability, and alignment with employee priorities.

Managing relationships effectively with candidates—even those not selected immediately—will be equally essential. With top talent in high demand, it’s important to view every interaction as part of an ongoing relationship; a candidate who may not be the right fit today could become an ideal match as the company evolves. Keeping doors open with a gracious and professional approach to rejections can foster goodwill, making it easier to reconnect with talented individuals down the line.

By cultivating a respectful and thoughtful hiring process, founders can build a network of potential future hires who feel positively about the brand, regardless of the immediate outcome.