[Sean Mullin]

Has anyone utilized specific AI due diligence software tools (Nexis, signalx, tracers etc.) and which do you prefer/recommend to improve the process?

[Craig Finley]

I have not but would be interested in hearing any success stories in leverage of this toolset.

[starla Pugh]

I have yet to find one that is easy to use by BOTH sellers & buyers and that’s easily integrated into other operating platforms used by BD. Love to find one though!

[Gauri Gupta]

It would be wonderful if there were tools to undertake Due diligence. However irrespecitve of the tool used, in my view, what is most important would be the ability to customize and parameterize the tool to suit the DD on hand. Please do share additional insights on the AI tool that you have used.

[Justin Lau]

One important aspect of due diligence is about finding out issues such as the culture of a target which automation tools may not be able offer.

[Macarena Romero]

I think there’s another interesting use case beyond dedicated DD software. For smaller transactions with limited DD budgets, tools like ChatGPT or Claude can be valuable for a first-pass review—summarizing documents, identifying potential red flags, and generating follow-up questions before involving specialist advisors.

They’re not a replacement for professional Due Diligence, but they can make the process more efficient and affordable. The challenge, of course, is data security and confidentiality. How are firms balancing the benefits of LLMs with the need to protect sensitive information? Are enterprise AI solutions becoming the standard?

[Maria Peres Panicker]

I think these tools only make sense for Private Equity and companies with a very strong M&A focus.
For certain organizations, each acquisition process is very different and it might happen that only one deal gets closed every year or every two years. Therefore, those tools are too expensive and not as worthwhile for the company to invest resources and time in experimenting and incorporating them into their M&A processes.

[Sree G]

My observation is that within technology space, the data about software,hardware flows from seller to buyer through excel sheets teams leading due diligence have started using LLMs/agents for the data analysis. Chatgpt, copilot, claude have been helpful in the data analytics in this space. The smarter AI tools as fabrix.ai can collect data of hardware in an echo system of any size of organization and provide analytics on realtime basis. We might need to work with the product company (fabrix.ai) to gather the data points and manage the analytics. While fabrix.ai platform are not designed for due diligence, the function of the tool can be leveraged during dd for merger/divestiture. For ex: If you need to collect latest data of every single device in a datacenter, office locations, manufacturing sites, distribution sites globally during due diligence, its a herculian effort. Maintaining real-time data during the course of PMI is not an easy task either, having access to such smart/real-time platforms will make the life easy for DD, design and post-merger integration. i have seen fabrix.ai tool working during due diligence.

regards,
sree

[Carolina Palacio Posada]

Using AI as a starting point for the due diligence process can help establish a consistent and standardised approach. However, every company is unique, and the due diligence methodology should be adapted accordingly to uncover the specific findings and value drivers most relevant to the buyer.

[Author]

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