Artificial Intelligence (AI) has transformed our daily lives to drive better customer experiences, from connected home devices to retail experiences. But what will it take to unlock the power of AI in the commercial due diligence process?
| 1 in 3 said the ability to harness the information with data analytics would help to accelerate the due diligence process (Merrill).
However, despite AI applications becoming crucial in M&A in the coming years, those working within the sector may feel in the dark about its true benefits and limitations.
Machine learning (ML) is an application of AI technology that has provided sectors with invaluable insight. For example, in fraud prevention and AML processes, ML can increase the accuracy and speed in which fraudulent activity is flagged and processed.
What are the limitations and opportunities?
Training ML platforms and human intervention is a problem often raised, as well as algorithmic bias, overestimating capabilities, and reputational risk. Hence, with all the benefits and wonders of AI, it still needs to be coupled with the human touch to fully appreciate and aid its applications.
So how can AI benefits be unlocked without compromising data reliability or losing the human cognitive function? Well, combining these factors can allow humans (for all our faults) to supplement AI and ML to remove false positives and provide contextual analysis. AI should complement, not supersede the current decision-making processes.
Providing a whole greater than the sum of its parts61% of M&A professionals expect technology to change due diligence by supporting deeper analytical capabilities. An intelligence cycle that combines Open Source Intelligence (OSINT), Natural Language Processing (NLP), and human analytics, is powerful.
However, a full switch to AI may not be favourable. Instead, finding a hybrid process which combines technology with human intelligence can drive deeper insights, and faster, more informed decisions for a competitive edge.
Contact us today to find out how you can leverage AI for more informed risk-based decisions.