AI in Due Diligence

Most of us who have gone through the tedious process of undertaking due diligence would agree that it is a painful but necessary exercise in M&A deals. According to research by Gartner in 2019, the average time to finalise a M&A deal has risen by more than 30% over the last decade due to increasing complexity in the deal-making environment, and growing scrutiny from governments, regulators and investors. There are now AI (Artificial Intelligence) technology than can be laid over data rooms to deliver intelligent, automated and rapid decision making (e.g. Luminance). Such AI technology analyses documents using supervised and unsupervised machine learning algorithms to understand the data and thereafter outputs key information and potential critical risks.

Have you experienced a deal where AI was used to assist with due diligence. If yes, did you think it was effective? If not, do you see AI playing a greater role in due diligence in the years to come?