AI Driven Due Diligence Workflow for Enhanced Compliance and Risk Management

AI-Powered Due Diligence Process

1. Initial Assessment

1.1 Define Scope of Due Diligence

Identify the specific legal areas and documents that require review, including contracts, compliance records, and regulatory filings.

1.2 Select AI Tools

Choose appropriate AI-driven tools to assist in the due diligence process. Examples include:

• Contract Review AI: Tools such as Kira Systems or LawGeex for analyzing contracts.
• Document Automation: Platforms like HotDocs for generating standard legal documents.

2. Data Collection

2.1 Gather Relevant Documents

Collect all necessary documents from the client or relevant parties, ensuring that all materials are complete and accurate.

2.2 Upload to AI Platform

Use a secure AI platform to upload the collected documents. Tools such as iManage or eBrevia can be utilized for document management.

3. AI Analysis

3.1 Automated Document Review

Leverage AI tools to conduct a preliminary review of the documents. This includes:

• Text Analysis: Utilizing natural language processing (NLP) algorithms to identify key clauses and terms.
• Risk Assessment: Tools like Luminance can highlight potential risks or anomalies in the documents.

3.2 Generate Insights

Compile insights from the AI analysis to identify critical issues, compliance gaps, and areas requiring further investigation.

4. Manual Review

4.1 Legal Team Review

Have the legal team review the AI-generated insights and conduct a thorough examination of flagged documents.

4.2 Cross-Verification

Cross-verify findings with additional resources and legal databases, utilizing tools like Westlaw or LexisNexis for comprehensive research.

5. Reporting

5.1 Compile Findings

Summarize the findings into a detailed report, highlighting key risks, compliance issues, and recommendations.

5.2 Present to Stakeholders

Prepare a presentation for stakeholders, utilizing visual aids and data visualizations to convey the findings effectively.

6. Follow-Up Actions

6.1 Implement Recommendations

Work with the client to implement necessary changes or actions based on the due diligence findings.

6.2 Schedule Regular Updates

Establish a schedule for regular updates and ongoing monitoring using AI tools to ensure continued compliance and risk management.