AI and Tech Tools for DD

I think that AI will have a role to play in DDs and all human services in the future.

However, given the importance of the outcomes of the DDs and the significant impact of getting something wrong, with also the recent horrors of using AI in the legal industry, my view is that clients seeking tax and legal DD services, and the best professionals providing these DD services, would still want that element of trust of human expertise, experience and wisdom. At this stage, AI is not there yet. Therefore, my view is that AI at this stage would play a more supportive and analytical role at least in tax and legal DDs (such as in areas of repetitive text, globally recognized knowledge, or mathematical tasks). One important reason is that the person having to sign off the DD analysis, recommendations and outcomes (prepared and conducted by AI), would in my view want to trust that its AI system has correctly and thorough reviewed every document before it, with every word or number having been given the correct understanding, interpretation and context, and because his signature on that advice signifies his guarantee and years of experience in the market, he would not be able to guarantee, that AI has not made a mistake, without conducting another human review or having a human person with satisfactory experience working together with AI. Hence, at least in tax and legal DDs, my view is that AI would enhance the human expertise as an additional time and cost efficiency tool, but it will not at this stage replace the need for human expertise to perform these tasks as the final signoff. Human beings would still want to look to human beings for their advice received, and would still want to hold human beings responsible for any incorrect advice received.