Can AI assist on due diligence process?
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Absolutely, AI seems to be playing a growing role in the due diligence process, especially when it comes to reviewing large volumes of documents like contracts, financial records, and compliance data. While I haven’t worked in a deal myself yet, the research I’ve come across shows AI tools can speed up red flag detection and help identify patterns humans might miss. That said, I think expert judgement is still essential—AI might surface risks, but deciding what they mean for the deal or how to act on them still comes down to people with real-world experience.
I’m seeing many of the same benefits in my current M&A work (which includes a divestiture project right now). AI has definitely made certain parts more efficient – organizing data rooms, helping draft CIMs, and flagging anomalies in financials early on. But I think there’s real risk in relying too heavily on AI without experienced deal professionals involved. AI can surface data points, but understanding what’s actually material, how it impacts value, and where to focus negotiations still requires M&A expertise. In the end, it’s a helpful tool, but not a substitute for judgment.
It would be interesting to leverage AI to optimize certain aspects of the DD process. It would be great if it could keep a record of all meetings and even schedule them with senior management. That said, I believe there are still areas where the human touch is essential. For example, in expert sessions, I think it’s important to bring part of our own personality into the conversation to generate genuine interest in what’s happening within the Target company. Perhaps in the future, AI will be able to capture that human essence and make our lives easier.
Yes, definitely in summarising large amounts of structured and unstructured data such as reports, research, and sentiment. It can also help generate reports, COMs, identify hidden risks, and anomalies, among other things. Use AI intelligently and it will save many days of effort and spot patterns which you might miss.
Perhaps the question is “should” AI assist in due diligence and to what extent/for which tasks. Surely, use of AI in this context can speed up the review of massive data and reduce costs but the risks are associated with it are related to data privacy and security, misinterpretation of contract clauses and blind spots.
I believe the first thing we need to clarify is: What do you want to use AI for? Once that’s defined, you can move forward with implementation.
That said, it’s important to be aware of the potential risks—especially around data privacy. For example, once confidential information is processed by AI tools, it may no longer remain truly “confidential.”
So, proceed thoughtfully and with care
It definitely can help as a sparring partner. I use it to counterprove my ideas and opinions in order to remove bias. As an example ,I write a direct prompt like “I have evaluating this company based on these financial statements and here are my takeaways, prove me I am wrong”
AI can greatly assist in the due diligence process by analyzing large datasets quickly, identifying risks, and improving accuracy. Using tools like a detector de IA can help with research to ensure authenticity and prevent misinformation. This integration enhances efficiency, reduces human error, and supports informed decision-making in legal, financial, and business transactions.
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