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AI to speed up M&A due diligence

Some law firms are using artificial intelligence technology to analyse data rooms.

Law firms are analysing due diligence documents on M&A deals using artificial intelligence.

Developed by Norwegian technology firm Luminance, the program uses machine learning technology, which provides computers with the ability to learn without being explicitly programmed, to read and understand data room documents. It can also sort, group and classify legal documents, identify potential risks and amend deal contracts.

The technology is already in use by Slaughter and May and BA-HR, a Norwegian law firm. The technology promises to make the due diligence process faster and more efficient.

AI is one of the many technology sectors piquing the interest of large private equity firms. China Investment Corporation, Temasek Holdings and Silk Road Fund recently backed an $800 million fund investing in AI technology companies, as well as mobile internet and the ‘internet of things’.