The Due Diligence process is a critical aspect of Mergers and Acquisitions and other investment deal flows. However, due diligence can be labor intensive, time consuming and costly. A huge amount of information sits across multiple sources. This information needs to be gathered, analyzed and verified by different people, which naturally results in human error and gaps in data.
In our digital age, the data we produce is growing at an exponential rate. This puts pressure on professionals in deal processes, who need to go through an ever-growing amount of information to reach the insights and value they need, often via manual review.
AI and machine learning technology are making a major impact because of their power to filter and extract value from volumes of raw digital information. These technologies can sort through millions of data points in seconds and deliver complete data coverage – a far cry from their human counterparts – which is incredibly valuable within the deal flow process.
What is AI due diligence?
Artificial intelligence due diligence is the process of using AI and machine learning technology to complement and enhance due diligence work when preparing for and executing a deal.
AI tools can process and extract insights from a wealth of information, going through documents and data points as a human would, but with supercharged speed and accuracy. The key areas of use for AI due diligence include compliance and risk assessment, information synthesis, information analysis and discovery.
Benefits of AI due diligence
Besides the ability to interpret and analyze data at a rapid pace, AI and machine learning technologies are much less prone to error than people. Compared to traditional due diligence, AI due diligence is more efficient, more accurate, and able to offer the advantage of foresight.
Automation and efficiency
AI tools can automate tasks and assess millions of data points in a matter of seconds, giving dealmakers the ability to run a more productive due diligence process and save significant time and cost (compared to human review). This in turn enables increased productivity of staff, whose time is freed up for higher value work.
Knowing with certainty
The predictive analytics that come with AI tools allow dealmakers to see future trends and situations ahead of time. They are able to assess, with certainty, what the most likely outcome will be – before it occurs.
With complete data coverage and unparalleled accuracy, AI and machine learning technologies can eliminate costly human error and prevent information gaps or silos from occurring. AI predictive analytics can give dealmakers a full picture of all the data so they can build a clear picture of trends and avoid pitfalls at critical deal moments.
VERAFI’s mission is to change how the world invests. An intelligent platform that combines AI with human intelligence, VERAFI goes beyond traditional due diligence to give you a competitive edge. Our platform is the first to intelligently aggregate, analyze and synthesize all relevant due diligence data in one place. We combine community sourced and corporate data to provide investors with valuable information that helps them make better decisions, faster.