External Data and AI Are Making Each Other More Valuable.

This article discusses how financial institutions are using external data and artificial intelligence (AI) to enhance their investment strategies. External data, also known as "alternative data," includes information sourced from outside a company's internal systems, such as social media, news feeds, government reports, and industry databases. By analyzing this data, investors can gain valuable insights into consumer sentiment, market trends, and competitor performance. The article also highlights the potential benefits of external data in conducting due diligence and guiding portfolio companies. However, it acknowledges the challenges of effectively harnessing and interpreting external data, as well as the importance of ethical and responsible data usage. [Extracted from the article]