Legal AI handles contract review but leaves the hard judgment work at both ends of due diligence
Legal AI accelerates contract review but cannot replace human judgment at the scoping and remediation stages of due diligence.Summary
Legal AI has revolutionized the middle phase of due diligence by rapidly processing contracts, but this efficiency shifts the critical work to the process's ends. The article argues that while AI can identify issues, it lacks the judgment required to scope the review effectively and interpret findings for remediation. This is particularly evident in cross-border M&A, where distinguishing between a genuine foreign operating footprint and a remote workforce determines the real risks. Furthermore, AI cannot anticipate the specific diligence requirements of insurers and lenders, meaning that disciplined human oversight at the beginning and end of the process remains essential. Firms that understand this will use AI to clear the middle and invest the saved time into high-value judgment work.
(Source：Complete Ai Training)