Organizing due-diligence documents

Legal Professional · Paralegal

Being replaced

“Organizing due-diligence documents” (Legal Professional) is being replaced by AI: it entered in 2022 and is projected to be largely replaced by 2027.

AI enters
2022
Largely replaced
2027
Replacement progress
80%
Technology / key factor
Document-understanding agents

What this task is

In mergers or financings, paralegals sort through large volumes of the target company's contracts, licenses, financial and litigation records, filing them by category and extracting key facts into a due-diligence checklist.

How AI replaces it

Since 2022, document-understanding AI has been able to read entire data rooms, classify files, extract key terms and compile them into tables. By around 2027, sorting and extraction are expected to be done largely by AI agents.

What stays human

Lawyers decide which findings amount to material risks, follow up on missing or questionable documents, and write the diligence conclusions and deal recommendations that clients rely on when deciding whether to proceed.