How AI is Changing the Workplace

🧠 Insights You Won’t Forget

Today's insights are inspired by an article published by Donald Lee-Brown & Terran Mott Are We Underestimating How AI Will Change Private Markets?

1. AI as the new Bloomberg for private markets

   Just as Bloomberg Terminals automated bond trading workflows in the 1980s and sparked new investment strategies, AI will be a Trojan horse in private markets, first saving analysts’ time, then enabling entirely new types of firms and strategies.

2. Labor automation as the wedge

   AI’s first target is the $100bn+ global labor market of analysts, associates, lawyers, and ops staff. By automating undifferentiated heavy lifting, data extraction, memo writing, redlining, AI frees human capital for intuition, creativity, and relationship-building.

3. Enduring moats: access, proprietary data, and ops excellence

   As AI becomes ubiquitous, advantages shift toward trust-based deal access, truly proprietary datasets legible to AI, and operational leverage at portfolio companies. Automation will dilute sourcing edge; winning will depend on what can’t be copied.

4. From alpha to infrastructure

   First movers gain short-term edge from faster diligence, sourcing, and pricing. But just like indexing rose after Bloomberg, AI advantages will erode as adoption spreads. Tomorrow’s infrastructure will be built on today’s alpha experiments.

5. Continuous market measurement as a new model

   AI makes it possible to constantly update investment theses with real-time signals, breaking down long feedback loops in private equity and venture. This “prepared mind” approach, once episodic, can now be automated.

6. The quant-native VC or PE firm

   AI can synthesize unstructured data into tradable insights, enabling strategies like pre-emptive term sheets, spread trading of venture assets, and more frequent secondary activity. Private markets could shift closer to quant-driven public markets.

7. Liquidity tailwind for private markets

   By improving price discovery and shrinking bid-ask spreads, AI could act as a catalyst for secondary trading in private assets. Greater liquidity would unlock new quantitative and event-driven strategies.

8. Contrarian view: the art still matters

   While AI enhances the science of investing, the article argues that the best investors will remain contrarian thinkers who can build trust, spot nuance, and adapt creatively. Technology sharpens, but does not replace, human judgment.

Recall from last week

1. Tariff legality decision is a stealth macro catalyst

   If expedited Supreme Court review strikes tariffs, approximately 170 billion of refunds could hit corporates, but Treasury would then need to issue more to fund the shortfall. Net effect depends on Fed balance sheet support. Strategy: treat it as a volatility event path not a free lunch and avoid paying peak multiples for hypothetical windfalls.

2. Dollar reads as growth scare barometer, not a clean short

   Despite falling front end yields, DXY chop suggests safety bids offset the rate impulse. The bullish risk regime likely needs a weaker dollar which is not yet in place. Risk control: avoid macro trades that require a decisive dollar breakdown until liquidity signals align.

💡 Eko Worth Remembering

⚡ Active Recall – Test Yourself 

Eko’s Top Pods

Answer:

Enduring moats like trusted relationships, proprietary data legible to AI, and operational excellence will become the differentiators once automation erodes first-mover advantages.

Enjoyed these insights? Forward this newsletter to a friend. Let’s grow smarter, together.