Can AI assist on due diligence process?
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Can AI assist on due diligence process?
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.
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