AI speeds up private equity diligence process
The use of AI in private equity diligence is becoming more prevalent, particularly in the fintech sector. According to a report, AI is making private equity diligence faster and broader in fintech. However, it is clear what happens to the findings once the deal closes is a concern. Due Diligence 2.0 is a term used to describe diligence that keeps evidence quality, human judgement, and post-deal execution at its centre.
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A diligence report identifies dependencies, risks, and other issues that the operating team inherits. In a regulated, data-dependent business, a finding that nobody owns becomes a control gap, a customer-outcome challenge, or an issue that never gets resolved. The report notes that Due Diligence 2.0 should be judged less by how much it finds and more by whether what it finds can be executed.
