Revolutionising Due Diligence with AI

A leading professional services firm sought to optimise its due diligence process. Their objective was to leverage advanced technology and AI to significantly improve efficiency, accuracy, and the depth of insights delivered internally and subsequently to their clientele, solidifying their position within the industry.

The opportunity 

Traditional due diligence necessitated extensive manual analysis of substantial volumes of data, frequently presented in unstructured formats. This conventional approach was inherently time-consuming, susceptible to human error, and placed considerable pressure on experienced practitioners. 

The organisation identified a critical requirement to address these challenges, aiming to accelerate deal cycles, reduce operational costs, and provide more precise insights. Their strategic imperative was to transform their operational model to meet the escalating demands for speed and accuracy in complex  decisions.

Our approach

ClearPoint partnered with the organisations to engineer an AI-powered solution designed to automate and augment their due diligence capabilities. The project was executed using an iterative, agile methodology, concentrating on a Proof of Concept (PoC) that demonstrated clear, measurable value. This PoC was delivered in a short time span showcasing rapid time-to-value.

The foundational element of the solution involved harnessing Large Language Models (LLMs) to intelligently extract pertinent information from unstructured  documents. This process encompassed converting pages into images for robust data extraction utilising GPT models, which proved exceptionally accurate in extracting tables and generating metadata regarding page layouts. Legacy reports were systematically classified and grouped to conform to a new, streamlined taxonomy.

A Retrieval Augmented Generation (RAG) system was constructed upon this extracted content, serving as a pivotal component for subsequent stages. The solution then progressed through distinct phases:

• Question generation: Leveraging a comprehensive knowledge base and industry-specific prompts, the LLM generated exhaustive due diligence questions. Initial experimental iterations focused on refining prompts to yield highly relevant and contextually appropriate questions.
• Report readiness: This module was engineered to ascertain the sufficiency of company data available to address the generated questions, highlighting any deficiencies in information.
• Report generation: Employing the RAG framework, comprehensive company data, and the generated answers, the system was capable of drafting sections of the due diligence report. This phase involved meticulous prompting and iterative refinement to ensure accuracy and mitigate the risk of hallucinations.

The underlying technology stack comprised cloud-deployed LLMs, advanced programming languages, AI orchestration frameworks, robust data storage solutions, and infrastructure-as-code principles. ClearPoint’s methodology prioritised continuous learning and adaptation, incorporating frequent feedback loops from subject matter experts to refine the models and processes. This collaborative endeavour ensured the solution was deeply integrated with the firm's operational requirements and expertise.
 

Outcomes

The AI-powered solution transformed the organisations due diligence process, yielding significant benefits:

• Speed: Analysis time was dramatically reduced from days down to hours, substantially accelerating deal cycles.
• Quality: The system produced insightful questions and observations that were comparable to, and in certain instances, surpassed the quality of those formulated by highly experienced individuals. This facilitated deeper, more data-driven insights.
• Scalability: The enhanced efficiency enabled teams to manage a greater volume of deals, fostering increased productivity and a more strategic focus.

This innovation has established a new benchmark for efficiency and insight, unequivocally demonstrating AI's profound potential to revolutionise complex professional services workflows. The organisation has subsequently initiated exploration into applying these techniques across other business functions, transitioning from proving capability to scaling impact. The organisation has moved from ‘can it be done’ to ‘can it do more’. 

ClearPoint’s AI services streamline complex workflows, transforming unstructured data into actionable insights at speed and scale. From due diligence to decision support, we engineer intelligent systems that deliver measurable outcomes.