AI-Powered Due Diligence Automation
Mar 01, 2025 | 1 min read
A legal tech firm needed an AI-driven solution to streamline the due diligence process for mergers, acquisitions, and investment rounds. Their goal was to automate document organization, risk analysis, and checklist generation while ensuring compliance and security. As part of the development team, I helped build an AI-powered due diligence platform that significantly reduced manual effort and improved efficiency.
Challenges
š¹ Due diligence involved handling large volumes of legal and financial documents, requiring structured organization.
š¹ Risk assessment was a time-intensive manual process prone to inconsistencies.
š¹ Checklists varied based on project type (funding, M&A, legal review) and user roles (lawyers, accountants, investors).
š¹ Communication around risks and compliance often led to delays.
Solution
To address these challenges, we developed an AI-powered automation platform with:
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Automated Document Structuring ā The system analyzed the nature of the project and generated empty folder structures for required documents.
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AI-Driven Risk Analysis ā Extracted key facts, risks, and summaries from uploaded documents.
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Checklist Automation ā Mapped documents to due diligence tasks based on user roles and project type.
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Interactive AI Chat ā Enabled real-time discussions to analyze and validate risk factors.
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Secure Document Handling ā Implemented role-based access and encryption for compliance.
Impact & Results
š 50% reduction in due diligence processing time.
š Improved risk assessment with AI-generated insights and checklist automation.
š Enhanced collaboration via AI-powered discussions on potential risks.
Tech Stack
š¹ Backend: Next.js, TypeScript, PostgreSQL
š¹ Frontend: React, Next.js
š¹ AI & NLP: OpenAI, Anthropic API for document analysis
š¹ Cloud & Infrastructure: AWS ECS, S3
By integrating AI-driven automation, the platform enabled legal teams to streamline their workflow, improve accuracy, and reduce turnaround time, making due diligence faster and more reliable.