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Note: This article is just one of 60+ sections from our full report titled: The 2024 Legal AI Retrospective - Key Lessons from the Past Year. Please download the full report to check any citations.

Automated Due Diligence Reporting

A 2023 case study reported by Deloitte found that AI-powered due diligence tools not only reduce report generation time but also enhance comprehensiveness. The study highlighted a 25% efficiency saving when using Generative AI compared to traditional AI-enabled due diligence, and a 75% efficiency saving compared to manual review.[40]

In 2024, Bain & Co reported that 54% of M&A professionals using AI for due diligence reported a reduction in transaction closing times.[41]

In our research for this paper, we found that due diligence processes in companies, regardless of size, often lack comprehensive oversight, with stakeholders from finance, privacy, legal, and information security working in isolation.

This segmented approach can overlook critical aspects such as a company's financial history or previous scandals. Legal AI geared towards Due Diligence holds promise for integrating disparate inputs, improving thoroughness of reviews, mitigating risks, and bolstering overall compliance efforts.