We know that AI is going to impact due diligence – approach, analysis, and data collection. Assuming that is true, I asked Claude to generate a 250 word post describing the impact. Below is the unedited response.

How AI is Transforming Technology Due Diligence

Technology due diligence has traditionally required extensive manual assessment of codebases, infrastructure, and technical documentation. Today, AI is revolutionizing this process, delivering both efficiency gains and deeper insights.

Accelerating Analysis

Modern AI systems can scan massive codebases in minutes, identifying vulnerabilities, technical debt, and architectural issues that might take human analysts weeks to discover. These tools contextualize problems, estimating remediation costs and prioritizing issues based on business impact.

For investors and acquirers, this compression of the due diligence timeline while expanding analytical depth creates significant competitive advantages.

Enhancing Predictions

AI’s most valuable contribution to technology due diligence is its predictive capability. By analyzing patterns across thousands of previous transactions, AI can forecast:

  • Integration complexity
  • Technical scalability limitations
  • Future maintenance challenges
  • Technology obsolescence risks

These data-backed predictions enable more accurate valuation models and risk assessments than traditional methods.

Human-AI Collaboration

AI isn’t replacing human experts—it’s creating a partnership where AI handles initial data-heavy analysis, allowing humans to focus on strategic evaluation and nuanced decision-making.

This collaboration delivers better outcomes than either could achieve alone. AI provides comprehensive data analysis and pattern recognition, while humans contribute contextual understanding and strategic insight.

As generative AI and specialized due diligence platforms evolve, we’ll see even more sophisticated capabilities, including autonomous testing of system resilience and dynamic simulation of integration scenarios.

For technology investors, embracing these AI approaches isn’t optional—it’s becoming essential to competitive advantage in a fast-moving marketplace.