[Mark Hassell]

I’m curious whether any course participants are currently using AI for any of their diligence workstreams? If yes, what’s good or bad about it? Is it actually proving to be better, cheaper or faster? Or is this all a myth?

[Iryna Whitnah]

Using chat GPT. Overall, while AI has the potential to significantly enhance due diligence processes, its effectiveness depends on various factors, including data quality, algorithm accuracy, human oversight, and organizational readiness. When implemented thoughtfully and complemented with human expertise, AI can deliver tangible benefits in terms of efficiency, accuracy, and insights in M&A due diligence. However, it’s essential to recognize its limitations and actively manage potential risks to maximize its value. So always check the outcome in any case of scenarios.

[Reeya]

I’ll be following this topic.
In my practice (Legal) we do not use AI currently for any aspects of due diligence exercises.
I have heard as indicated by Iryna above, of persons using ChatGPT as a source to initiate search results but i personally am old school and not sold on this level of technological dependence.

[Tim Schinke]

Our (younger) Analysts are using Chat GPT effectively in the DD process for customer and profitability analysis.

[Jabari Bovell]

Using ChatGPT in some aspects of the diligence process but not seen widespread use of it at this stage.

[Anthony McNairney]

No. We currently are not using AI in our DD

[Maram Al Nahdi]

No, we do not use AI currently for any aspects of DD exercises.

[Lucy Sargent]

No, we do not

[Ahmed Alhishwan]

Hi everyone,

I’d be happy to share my thoughts and experiences regarding the use of AI for diligence workstreams in M&A transactions. As a commercial transaction lawyer, I’ve seen the adoption of AI technology grow steadily in our field, particularly for due diligence tasks. Here’s a closer look at what I’ve observed:

The Good
Efficiency and Speed:

Faster Document Review: AI-powered tools can sift through large volumes of documents at a speed that’s impossible for humans to match. They can quickly identify relevant clauses, flag potential issues, and extract key information. This significantly reduces the time spent on document review, allowing us to focus on more complex and strategic aspects of due diligence.
Consistency and Accuracy: AI tools provide consistent results and reduce the risk of human error. They can be particularly effective in identifying patterns and anomalies that might be missed during manual review.
Cost Savings:

Reduced Billable Hours: By automating routine and repetitive tasks, AI can reduce the number of billable hours required for due diligence. This can lead to cost savings for clients, making legal services more affordable and accessible.
Enhanced Analysis:

Data-Driven Insights: AI tools can analyze vast amounts of data and provide insights that help in making informed decisions. For instance, they can help identify trends, benchmark against industry standards, and assess risks more comprehensively.
The Bad
Initial Setup and Learning Curve:

Implementation Challenges: Implementing AI tools requires an initial investment in time and resources. There’s a learning curve involved, and both lawyers and clients need to be trained on how to effectively use these tools.
Integration Issues: Integrating AI with existing systems and workflows can sometimes be challenging. Ensuring seamless integration requires careful planning and execution.
Over-Reliance on Technology:

Potential for Misses: While AI is highly effective, it’s not infallible. Over-relying on AI tools without adequate human oversight can lead to missed nuances and contextual understanding that only experienced lawyers can provide.
Quality Control: Ensuring the quality and accuracy of AI outputs remains crucial. Regular audits and quality checks are necessary to maintain the reliability of AI tools.
Is It Better, Cheaper, or Faster?
Better:

AI tools can enhance the quality of due diligence by providing thorough and accurate reviews. However, they are most effective when used in conjunction with human expertise. The combination of AI’s efficiency and a lawyer’s judgment and experience is what truly adds value.
Cheaper:

In the long run, AI can reduce costs by automating time-consuming tasks and decreasing the need for extensive manual labor. However, the initial setup and ongoing maintenance costs need to be considered.
Faster:

Absolutely. AI can dramatically speed up the due diligence process, allowing for quicker deal timelines. This speed can be a significant competitive advantage in fast-moving transactions.
Conclusion
In my experience, AI is proving to be a valuable tool in the due diligence process. It offers efficiency, accuracy, and cost benefits, but it’s not a complete replacement for human expertise. The key is to strike the right balance between leveraging AI technology and applying our professional judgment and insights. By doing so, we can deliver better, faster, and more cost-effective legal services to our clients.

I’d love to hear if others have similar experiences or any additional thoughts on this topic!

[RaQia Randall-Bouchard]

We will leverage AI in the M&A process going forward. @Ahmed Alhishwan – Thank you for detailed review! Very helpful.

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