A shift is underway in India’s venture capital sector, and we don’t mean in the way these firms are investing in AI, but in the way they are using AI to streamline deal flow, decision making and their thesis.

Artificial intelligence was once seen as an add-on, but is now part of the routines of VC firms. VC money is flowing to AI startups and AI startups and models are also changing how venture investing works.

According to an Inc42 survey, 70% of Indian VC firms are using AI in key part of their operations. This number is an early indicator. A closer look shows that AI is not a temporary experiment. It is becoming part of the core process.

The AI Journey: How Curiosity Became Capability

At many Indian venture capital firms, artificial intelligence did not arrive through formal plans or directives. Instead, it entered daily operations through interest and gradual use.

AI adoption across VC firms has followed a similar pattern — starting with individual use and becoming a broader capability that improved workflows and decision-making. Each firm followed its own path, but the outcome was similar: AI moved from a tool to a key part of how venture capital is done.

Silverneedle Ventures, which invests in SaaS and AI companies, brought in AI from the beginning. AI was part of their setup from the start, said founder Ajay Jain.

Then there’s Cornerstone Ventures. The VC fund’s first brush with AI was using ChatGPT for research. Managing Partner Abhishek Prasad said, though, it changed rather quickly from basic use: “In no time, almost everyone on the team was using GPT. This was as early as 2023. We were early users among the VC industry.”

What started as a test became a tool that improved workflow and decision-making.

At Good Capital, the use of AI began through a mix of interest and need. General partner Arjun Malhotra recalls that the firm was exploring investments in some AI startups and reading content like the Every blog. “Staying current with new........

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