AI for Due Diligence (Part 1)

AI has the potential to meaningfully improve the way due diligence firms conduct their investigations. Traditional methods, while effective in many cases, often rely on time-consuming manual work. AI-powered tools, on the other hand, can streamline these processes by automating much of the legwork, delivering faster and yet still comprehensive results.

The below list outlines how the due diligence firms that we work with are currently leveraging AI, with a focus on using the tools as part of the research process. Part 2 of this series will focus on more advanced applications.

1. Scoping an Investigation More Efficiently

One of the first tasks in any due diligence investigation is determining how much work needs to be done. AI can simplify this by quickly scanning vast amounts of open-source data and offering a broad overview of relevant information. Instead of spending hours combing through databases and running individual searches, investigators can get a clearer picture of potential risks upfront. This speeds up the scoping process and provides a more accurate estimate of the time and resources needed for the investigation.

2. Providing Faster Client Updates

Clients want to know if their business partners, investors, or counter-parties pose any risk as early as possible. AI can help by flagging potential red flags earlier in the process, allowing firms to provide interim updates to clients faster. This doesn’t mean sacrificing thoroughness—AI can comb through multiple data sources in a fraction of the time it takes for a human researcher to do the same, identifying critical findings that require attention sooner.

3. Ensuring No Critical Information is Missed

Even the most skilled investigators can miss things, especially when dealing with complex subjects that span multiple jurisdictions or languages. AI tools can reduce this risk by scanning a wider range of sources than a human team could reasonably cover. By cross-referencing multiple data points and identifying patterns or connections, AI helps ensure that no relevant information slips through the cracks.

4. Expanding the Scope of Research

AI allows investigators to broaden their research scope without needing to allocate significantly more resources. Because AI can automate much of the data collection and analysis process, investigators can afford to look into more entities, transactions, or relationships that might otherwise have been excluded due to time constraints. This expanded scope can provide a fuller, more accurate picture of potential risks.

How to Get Started

DiligenAI is our AI-driven solution that helps due diligence firms streamline their research process. By combining large language models (LLMs) with open-source data, DiligenAI automates the search for risk intelligence, providing faster, more accurate, and more cost-effective results.

With DiligenAI, firms can scope investigations more efficiently, deliver timely client updates, and ensure that no critical information is missed—all while reducing costs. It’s not about replacing human expertise but enhancing it, allowing investigators to do more with less and focus on higher-level analysis. DiligenAI is designed to make due diligence smarter, faster, and more comprehensive.