AI in Due diligence and compliance

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.

B. Due diligence and compliance

The integration of AI in due diligence and compliance processes has significantly transformed these critical legal functions. This section explores recent advancements and their impact on the legal sector.

As AI continues to transform due diligence and compliance processes, key areas of focus include:

• Legal AI will help legal professionals adapt to a rapidly evolving regulatory landscape

• There are potential biases in AI and its training data which must be taken seriously

• Explainable AI models will further enable decision-making processes

• Data security and confidentiality of Legal AI tools will come under increased scrutiny (See III. D.)

• Ethical standards and professional judgment should dictate automated processes, rather than being an afterthought [42]

"I've witnessed an internal AI platform review over 100 supplier contracts and provide feedback on certain clauses in an Excel format. This was manually checked and the first round had an impressive 75% accuracy. This empowered the challenge behind external counsel document review fees. Doing the work faster internally was incredibly helpful when trying to reduce fees"

Aksa Kalam, Senior Legal Counsel, UK