In today’s fast-evolving tech landscape, it’s becoming clear that AI is not just a buzzword but the driving force behind the future of nearly every software company. This bold statement comes directly from Avlok Kohli, the CEO of AngelList, who recently shared his thoughts on TechCrunch’s Equity Podcast. Kohli believes that in 2025, every software company is now, essentially, an AI company.
The Surge of AI Across Industries
Kohli’s perspective is reflective of a broader trend unfolding in the startup world. According to data from AngelList, around 40% of startups on their platform are now leveraging AI in some capacity. This shift signifies how AI technology has become ubiquitous, touching industries ranging from healthcare to e-commerce, fintech, and beyond.
In fact, AI is no longer just the domain of tech giants or AI-first companies. It’s a core component for businesses across the board. Even companies that once wouldn't have considered themselves as working in AI are now integrating machine learning, data analytics, and automation into their products and services.
For Kohli, this trend is not just about the rise of AI companies but about every software company adopting AI-driven solutions. Whether it’s enhancing user experiences, streamlining operations, or creating entirely new products, AI is shaping the future of software development.
The Role of AngelList in the AI Revolution
AngelList has been at the forefront of facilitating this change. Kohli spoke about how the platform has adapted to the growing demand for AI-related investments. In the past, AngelList primarily focused on Special Purpose Vehicles (SPVs), but now the company is seeing a shift towards using AI-powered tools to give investors and founders better insights into the market. One of their new initiatives, Fin, is an AI-powered intelligence tool that allows investors to track trends, including the percentage of investments going into AI startups compared to traditional software companies.
This shift to AI-powered intelligence marks a significant move for AngelList, signaling that even venture capital is leaning into AI to stay competitive and relevant in this rapidly evolving market.
What This Means for Startup Founders
For startup founders, Kohli’s message is clear: AI integration is no longer optional. Whether your product is inherently AI-based or not, adopting AI is essential to staying ahead. Companies that embrace AI can leverage it to improve efficiency, reduce costs, enhance user personalization, and create smarter products.
As Kohli pointed out, even companies that aren’t building AI products directly need to consider AI tools for automation, data analytics, and business optimization. AI is becoming the backbone of business operations, and founders who integrate it into their companies will have a distinct advantage in attracting investors and scaling their businesses.
The Rise of Scouts and New Investment Models
Alongside the AI shift, Kohli discussed the growing influence of scouts in the venture capital world. Scouts are individuals who identify promising startups and bring them to the attention of investors. This shift is part of a broader trend in the fundraising landscape, with a move away from traditional models toward more agile, data-driven, and decentralized approaches.
Startups today have more opportunities than ever before to connect with investors, especially with the rise of networks and tools like scouts and AngelList’s AI-powered platform. The democratization of fundraising means that even early-stage companies can tap into a broader pool of potential backers, provided they’re using the right technologies and are in sync with the broader trends.
Why AI is the Key to Staying Competitive
AI isn’t just a tech trend—it’s the future of business. The startups that are leading the charge today are those who have already embraced AI technologies to solve real-world problems. From automating routine tasks to making smarter, data-driven decisions, AI offers limitless potential for companies to grow and differentiate themselves in a crowded market.
For anyone looking to succeed in today’s competitive tech environment, it’s clear: AI is the key to staying ahead. Companies that can build on AI tools, whether for product development, customer experience, or business operations, will be the ones to thrive.
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