The Best AI Tools for Due Diligence in 2024
Due diligence is a critical part of any major transaction, whether you are acquiring a company, raising capital, or entering a strategic partnership. The process has traditionally involved large teams reviewing contracts, financial records, filings, emails, and other documents by hand. That approach is still important, but AI is making the work faster, more consistent, and easier to manage.
For lawyers, legal operations teams, investors, and deal professionals, the best AI tools for due diligence can help surface risks sooner, reduce review time, and improve coverage across large document sets. The right platform depends on the type of diligence you run, the volume of data involved, and how much automation you need.
Why AI Is Changing Due Diligence
Due diligence often requires reviewing huge volumes of unstructured information. That can include:
- Contracts and amendments
- Financial statements
- Regulatory filings
- Litigation records
- Internal emails and communications
- Intellectual property documents
- Leases and other commercial agreements
Manual review is still necessary for judgment and legal interpretation, but AI can improve the process in several ways:
- Faster document review: AI can process large sets of documents far more quickly than manual review alone.
- More consistent results: Automated analysis applies the same rules across the entire dataset.
- Better issue spotting: AI can identify clauses, patterns, and anomalies that may be easy to miss.
- Lower review costs: Automation reduces time spent on repetitive work.
- Stronger risk detection: AI helps teams focus on documents and issues that need closer attention.
Best AI Tools for Due Diligence
1. Kira Systems (now part of Litera)
What it does:
Kira is an AI-powered contract analysis platform that identifies, extracts, and reviews key provisions from legal documents. It can be trained to find specific data points such as change of control clauses, termination rights, indemnification language, and other terms relevant to diligence.
Why it is useful:
Kira is especially valuable in M&A and financing transactions, where large volumes of contracts need to be reviewed quickly. It helps teams find important terms buried in long agreements and flag areas that require closer legal review.
Best for:
- M&A due diligence
- Commercial contract review
- Real estate transactions
- Large-scale agreement analysis
Pros:
- Strong contract analysis capabilities
- Customizable data extraction
- Useful for legal teams handling large document sets
- Integrates with other legal technology
Cons:
- Focused mainly on contract review
- May need to be paired with other tools for broader diligence
- Can be a significant investment
2. RelativityOne
What it does:
RelativityOne is a cloud-based eDiscovery and legal data management platform with AI and machine learning features. Tools such as clustering and active learning help teams organize documents, identify relevance, and discover key themes in large datasets.
Why it is useful:
Due diligence often goes beyond contracts. It may include emails, internal communications, and other unstructured data sources. RelativityOne helps teams review those materials efficiently and identify documents that may raise concerns.
Best for:
- Comprehensive due diligence
- Investigations and regulatory reviews
- Complex matters involving large electronic data sets
Pros:
- Broad platform for document management and review
- Advanced AI for relevance and concept identification
- Scalable and secure
- Strong support ecosystem
Cons:
- More complex to implement than simpler tools
- Pricing can be substantial
- Best known as an eDiscovery platform rather than a pure diligence tool
3. Luminance
What it does:
Luminance is an AI legal document review platform that uses natural language processing and machine learning to analyze contracts, leases, and other legal documents at scale. It identifies clauses, risks, and deviations from standard language.
Why it is useful:
For diligence, Luminance speeds up review by highlighting unusual clauses, missing provisions, and documents that differ from expected norms. That makes it easier for legal teams to assess the legal and compliance profile of a target company.
Best for:
- M&A due diligence
- Contract portfolio review
- Real estate diligence
- In-house legal review and compliance work
Pros:
- Fast document review
- Good at spotting non-standard clauses
- Handles multiple document types
- User-friendly interface
Cons:
- More focused on clause identification than broad semantic analysis
- May be expensive for smaller firms
4. Eigen Technologies
What it does:
Eigen specializes in extracting and analyzing unstructured data from documents. Its NLP-based platform can pull structured information from contracts, financial statements, and regulatory filings.
Why it is useful:
Due diligence often requires extracting specific data points from many different sources. Eigen can identify details such as dates, party names, financial figures, and contractual obligations, making it easier to compare documents and build diligence summaries.
Best for:
- Financial institutions
- Private equity diligence
- High-volume document analysis
- Data extraction from complex documents
Pros:
- Accurate data extraction
- Handles a wide range of document types
- Supports complex language analysis
- Scales well for large projects
Cons:
- May require customization and training
- Can be more than needed for smaller diligence projects
5. Everlaw
What it does:
Everlaw is a cloud-based eDiscovery platform with AI features such as clustering, predictive coding, and auto-categorization. These tools help users sort through large document sets and identify relevant material more efficiently.
Why it is useful:
Due diligence often involves emails, memos, and other electronic records in addition to formal contracts. Everlaw helps teams find key documents, identify communication patterns, and flag potentially problematic content.
Best for:
- Complex due diligence reviews
- Internal investigations
- Litigation-adjacent matters
- Teams needing collaborative document review
Pros:
- Intuitive interface
- Strong AI tools for review and analysis
- Good collaboration features
- Cloud-native and secure
Cons:
- Primarily built for eDiscovery
- Subscription costs can grow with usage
6. Hyperlegal
What it does:
Hyperlegal is an AI platform for reviewing legal contracts and documents. It uses NLP to extract information, identify risks, and compare clauses against standards or prior agreements.
Why it is useful:
In due diligence, Hyperlegal can help teams quickly review contract sets, identify missing or non-standard provisions, and prioritize documents that need deeper analysis. It is useful for creating consistency across review workflows.
Best for:
- M&A due diligence
- Commercial contract review
- In-house legal teams
- Standardized contract analysis workflows
Pros:
- Efficient at identifying key terms and risks
- Can be trained for specific industry needs
- Helpful for consistency and compliance
- Practical for legal teams
Cons:
- Strongest in contract analysis
- Broader diligence projects may require additional tools
- Adoption may depend on internal comfort with AI workflows
How to Choose the Right AI Tool for Due Diligence
The best AI tool for due diligence depends on your workflow and the type of matter you handle most often. Consider the following:
- Scope of diligence: If you mainly review contracts, tools like Kira and Luminance may be the best fit. If you need broader document review, RelativityOne and Everlaw are stronger options. If your focus is extracting specific data points, Eigen may be a better match.
- Data volume and complexity: Larger, more complex datasets require tools that can scale and handle varied document types.
- AI capabilities: Some platforms are better at clause extraction, while others are better at thematic analysis, clustering, or data extraction.
- Workflow integration: The tool should fit into your existing legal tech stack and review process.
- Ease of use: A platform is only useful if your team can adopt it quickly and use it consistently.
- Budget and ROI: Consider time savings, reduced errors, and improved risk detection against the cost of the tool.
Pricing and Value Considerations
AI due diligence tools can vary widely in price. Costs often depend on the vendor, document volume, number of users, available features, and support level. Some enterprise platforms use subscription pricing, while others may offer project-based arrangements.
When evaluating value, look beyond the sticker price. The real benefit often comes from:
- Reduced manual review time
- Fewer errors and missed issues
- Faster deal timelines
- Better risk detection and issue triage
For many teams, the best approach is to request a demo or trial and test the tool against real diligence use cases.
Frequently Asked Questions About AI for Due Diligence
Can AI replace human lawyers in due diligence?
No. AI supports due diligence, but it does not replace legal judgment. Lawyers are still needed to interpret findings, assess context, and make strategic decisions.
How accurate are AI due diligence tools?
Accuracy depends on the platform, the quality of training data, and the complexity of the documents being reviewed. Strong tools can be highly effective for repetitive tasks, but human review is still essential.
What types of data can AI analyze for due diligence?
AI tools can review contracts, leases, financial statements, regulatory filings, emails, internal communications, and other unstructured documents, depending on the platform.
How long does it take to implement an AI due diligence tool?
Implementation time varies. Some tools can be used within days or weeks, while more complex platforms may take longer to configure and train.
Are AI due diligence tools suitable for smaller law firms?
Yes. While some enterprise products are costly, many platforms now offer more flexible pricing. Smaller firms can often use AI to improve efficiency in contract review and targeted diligence work.
Conclusion
AI is changing how due diligence gets done. Instead of relying entirely on manual review, legal teams can now use AI to process documents faster, identify risks earlier, and focus their attention where it matters most.
The best ai tools for due diligence include Kira Systems, RelativityOne, Luminance, Eigen Technologies, Everlaw, and Hyperlegal. Each platform serves a different need, from contract analysis to broader document review and data extraction.
The right choice depends on your workflow, document volume, and review goals. Used well, AI can make due diligence faster, more consistent, and more useful without replacing the human judgment that legal work still requires.