Diligence is an essential aspect of making an investment. Generally, due diligence is done manually by a team of wealth managers and business analysts. They research different aspects of companies and compile reports. However, manual work is often prone to errors and can miss certain facets of information due to an overload of data.

This can have a significant impact when choosing potential companies for investments. Fortunately, the Photon Insights AI algorithm is revolutionizing the due diligence process by parsing through large datasets, both internal and external, thus helping analysts better research their companies of interest.

Understanding Due Diligence

The term “due diligence” refers to the activities a wealth manager generally performs before entering into an agreement with a company. The agreement can be to build short- or long-term investments or partnerships based on current market analysis.

This involves a deep investigation of risk factors, investment opportunities, acquisitions, and overall value. The process of due diligence can have various aspects, including:

• Financial Due Diligence: Investigating financial statements, such as current or previous earnings, SEC filings, fundamentals, and the overall financial health of an organization.
• Operational Due Diligence: Analyzing the management structure, business models, operational processes, supply chains, and more.
• Commercial Due Diligence: Evaluating market value, active competitors, customer interaction, and growth potential.
• Legal Due Diligence: Examining legal contracts, compliances, and liabilities of an organization.

All these aspects are researched thoroughly to gain quality insights into the target company and determine if it fits into your client’s desired set of goals. The aim of conducting due diligence is to analyze if a company is suitable for investment or partnership.

How AI is Revolutionizing Due Diligence?

There are many challenges with current methods of performing due diligence. Manual analysis is highly error-prone due to dealing with thousands of websites, files, and documents while working with multiple companies.

A person can only read through so many data points. Photon Insights’ AI solution is very helpful in automating large portions of this tedious diligence process and overcoming these limitations.

Harnessing large language models (LLMs), Photon brings out key insights of companies of interest using both up-to-date web information and user-provided data. Below are some key aspects where AI is revolutionizing due diligence:

Team Collaboration & Management: The Photon Insights AI tool features team collaboration, allowing you to easily edit and share your research reports and documents among members of your organization.

Data Collection & Analysis with AI: The Photon Insights AI-enabled tools help gather useful information from hundreds of thousands of news sources from the internet as well as uploaded research documents.

Automatic Document Review with AI: Our tool is great for reviewing sources and surfacing potential red flags, such as violations of ESG regulations.

Financial Research with AI: The Photon Insights AI tool is designed specifically for the financial industry. It compiles financial data and analyzes relevant documents such as earnings calls, filings, and more.

Early Warnings using AI: Photon’s sentiment analysis algorithms help flag potential indicators and make the investor aware of potentially game-changing information.

Conclusion

With Photon Insights, you can essentially template and automate your research. For your companies of interest, you select which attributes are important to you, where you want your data sources from, timeframes, and more, and Photon will autogenerate your report based on your desired format.

Note that Photon is not intended to completely replace the manual diligence process, but rather to serve as a super supplement. We will do the first 80% of the research for you, and then it’s up to the wealth manager to use and build upon this information to make the best decisions.

Photon Insights will save them many hours of pouring through web information and internal CRMs. The tool also alerts them to critical pieces of information they might have otherwise missed.

Embrace the AI revolution with Photon Insights and request a demo today to supercharge your diligence and investment research!