AI has made it possible to handle and analyze massive data sets quickly, cutting down on the time it used to take days or weeks to complete tasks.  This change aims to improve accuracy and create new opportunities for in-depth study without having to rush to do a task on time. 

Even if due diligence is a tried and tested recipe, let us examine how artificial intelligence (AI) is revolutionizing due diligence and improving the efficiency and precision of experts’ jobs. 

A large amount of information about several entities is typically uploaded into a virtual data room as part of the due diligence investigation process. Teams working on the investigation can then access the room to review and report on the information they have reviewed.  

In particular, the review process takes a long time to complete and requires a lot of work. Depending on the extent of the investigation, it may even take months. Client expenses could inevitably rise because of this.  

Lease abstraction and the role artificial intelligence plays in it are very important in the fast-paced world of the commercial real estate industry. Even with the many obstacles in the CRE lease abstraction, AI can have a significant impact on due diligence.  

Therefore, the Pros of Artificial Intelligence (AI) in Due Diligence include:  

• Quick Recognition: AI can recognize material provisions in agreements and other details faster than humans. 

• Efficient Review: AI reviews documentation for due diligence investigations more quickly and effectively. 

• Cost-Effective: AI makes the due diligence process more effective and affordable for clients. 

• Accuracy and Efficiency: AI improves the accuracy of information retrieval and reduces the need for human intervention. 

• Focused Teams: AI allows due diligence teams to focus more on extracting important clauses from numerous documents. 

• Significant Impact: AI plays a crucial role in lease abstraction within the fast-paced commercial real estate (CRE) industry. 

• Obstacle Management: AI helps overcome challenges in CRE lease abstraction, enhancing due diligence. 

Cons of AI in due diligence however looks like:-  

• Over-reliance on AI: In some cases it may lead to overlooked information during documentation extraction due to low-quality reviews. 

• Unfavorable Effects: Missing important information can expose clients to unavoidable risks especially when it comes to CRE lease abstraction where clients rely primarily on the lease abstracts.  

• Integration Costs: Expenses include software licensing for firms for not developing AI internally. 

• Technical Support Costs: Additional expenses for ensuring optimal software performance. 

However when it comes to PredioAI’ AI driven software for lease abstraction, it facilitates higher due diligence through its AI co-pilot model. PredioAI’s lease abstraction tool is advanced, thanks to the AI-powered platform that focuses on real estate-specific vocabulary and terminology and takes a tailored approach to local zoning restrictions. As it’s on the Co-pilot model it requires human intervention which shall primarily enhance job opportunities.  

So here is how an AI and human  combination leads to powerful due diligence. Indeed,in general this combination may greatly speed up the due diligence process. How to do it, is as follows: 

1. Data processing: Artificial intelligence is capable of quickly analyzing large volumes of data from a variety of sources, such as bank records, court documents, and market patterns. It can swiftly spot trends, abnormalities, and possible threats, saving time compared to human data processing. 

2. Risk assessment: Compared to humans alone, AI systems are able to evaluate risk factors more thoroughly and precisely. AI can speed up decision-making by offering insights into possible risks related to partnerships, acquisitions, and investments through the analysis of real-time and historical data. 

3. Automated Document Review: Due diligence-related documents including legal contracts, regulatory filings, and other papers can be swiftly scanned and analyzed using AI-powered document review systems.Post the automation process human reviewers can  ensure that crucial documents are thoroughly examined while bringing maximum accuracy saving ample time. 

4. Predictive analytics: By utilizing past data and market dynamics, AI algorithms can predict future trends and performance. Teams responsible for due diligence can make more informed judgments faster by using predictive analytics to foresee possible obstacles or possibilities. 

The intricacy of the procedure and due diligence are inextricably linked. Due diligence will therefore be impacted by the gravity of the papers as well. The complexity of the lease documentation can affect how accurate AI lease abstractions are. Our highly trained AI models are generally capable of extracting important lease terms and clauses with a high degree of accuracy.  

But it’s crucial to recognize that no AI system is perfect, necessitating human review or modification to guarantee accuracy—especially when dealing with odd or unclear lease language. Over time, increasing accuracy is a result of AI systems’ constant optimization and improvement.  

At PredioAI, our AI platform operates in Co-Pilot mode, ensuring a manual review is always performed at the end of the process. This combination of AI-driven software and human intervention guarantees high accuracy in due diligence. Our lease abstraction software also safeguards jobs, preparing us for future opportunities and teamwork, which leads to hiring qualified applicants. 

PredioAI’s AI-driven lease abstraction tool streamlines the due diligence process in commercial real estate by condensing important lease data into a uniform format.  To know more about PredioAI’s  product and to ensure smooth functions , connect with us today.