00:00I think you have to really flip it around. You have to say yes, very, very rarely. So I think,
00:05you know, you have to really want to check all the boxes because remember, we're investing in
00:10things we have to hold for five years plus. So, you know, we can't get out quickly. So it's like
00:15getting married. You have to really, you have to really commit. Brad, if I'm going to raise
00:20private equity today, do I have to have AI in my business plan? Is that the only thing getting
00:24done today? That's a great question. I think AI really is crowding out so much capital from other
00:32areas of investment. I think you either have to have an incredible story how where you're investing
00:36is not going to be impacted by AI, or you have to have a really clear AI strategy,
00:42how you're going to integrate AI and think about AI because it is impacting every aspect of business,
00:50but particularly the technology landscape. So what's the angle? What's the avenue that you guys
00:57are playing as it relates to AI? Or are you putting a lot of chips out in various parts of
01:01the supply
01:02chain? It's a great question. So first of all, the first thing you have to do is really understand
01:08what are the moats that are going to hold up in an AI world? What is it that a software
01:14company,
01:14software investors and financial technology investors. So we have to really think about
01:20what are the things that AI is not going to disrupt. So when you see strong proprietary
01:26data sets, when you see algorithms that are unique and developed over long periods of time,
01:32when you see that there's a market structure where your customers interact uniquely, it's much harder
01:39for AI to come in and replace that. And of course, in financial services, where you've got high levels
01:45of compliance, governance requirements, all those kinds of limitations make it harder for AI to be
01:54disruptive. So you've got to really pick those spots as well. But there are a lot of places that you
01:59do
01:59have to worry about whether AI is going to be encroaching on your space.
02:03Is this you guys? I mean, this is how granular it gets, folks. Highway. You're a backer at FTV of
02:10a
02:11highway, which is like digital improving trucking, right? Discuss.
02:17Yeah. So highway is an amazing company that creates a marketplace for freight brokers and trucking
02:24shippers to interact and make sure that there's no fraud. You'd be shocked how much fraud there is
02:30in the trucking industry. Every interview we do, AI hasn't gotten to highway or all their clients
02:37yet. I know you're going to say, Tom, you're wrong. Well, it's definitely coming. And we have to be
02:44thinking about how we integrate AI into highways solutions. But the reality is it's not going to
02:51change the fact that we have the best marketplace for these participants to come together, find each
02:57other and make sure they verify the right counterpart. Are we going to lose jobs because
03:02of all this ballet? You know, I think we're going to lose some jobs and we're going to create a
03:06lot
03:06of new and exciting jobs. And I think that's always very hard to understand and think through the
03:11implications. You know, the reality is in the public market, investors get to decide no, yes, or too hard
03:18and just sell. In the private market, we have to make decisions that are going to last a very long
03:23period of time. So we have to pick companies that we are really, really durable, long-term
03:29investments. And so that's a big difference in terms of how we think about where our money is and
03:34how we think about value. Right now, the AI story, at least in the public equity markets, has been one
03:40we're just going to throw money at AI. Whoever's spending the most money, whether it's an aggregate,
03:43whatever, we're going to that. And that worked for a long time. Now the market's become more
03:47discerning and picking winners and losers. And they're highlighting areas like software,
03:52software as a service in particular, maybe the online travel agencies is another little niche
03:56that might be at risk. Was that overdone? Is that overdone? Or is that just the market being
04:00efficient, trying to identify winners and losers? I think it's exactly right. What happened is
04:05the immediate reaction to the realization of how powerful AI and particularly agentic AI is going
04:12to be was, this is too hard, sell everything. And so all the babies got thrown out with the bathwater.
04:18Now people are starting to come back and realize, gee, a lot of these companies have a system of
04:24record, have something proprietary. It's not going to be easy. And so you're starting to see them
04:28separate the good from the bad and, you know, allocate capital back. And I think it did get oversold.
04:34So you're seeing a nice recovery.
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