What is AI Due Diligence? A specialized assessment layer for M&A transactions that evaluates a target company's AI capabilities, adoption readiness, data infrastructure, and human factors that determine whether AI investments will actually generate returns.
AI Due Diligence
Go beyond traditional technology assessments. Our behavioral science-informed AI due diligence evaluates not just what AI a target company has, but whether their teams can actually use it effectively.
Why Standard Tech DD Falls Short
Traditional DD Evaluates the Wrong Layer
Traditional technology due diligence evaluates infrastructure, code quality, and scalability. These are necessary but insufficient. They tell you what technology exists, not whether it actually creates value.
70% of AI Projects Fail Due to Human Factors
The data is clear: the majority of AI initiatives fail not because of technical limitations, but because of adoption resistance, change management gaps, and misaligned incentive structures. These risks are invisible to standard due diligence.
Behavioral Science Catches What Others Miss
WorkWise's behavioral science lens systematically evaluates the human factors that determine AI ROI. We identify adoption barriers, cultural misalignment, and organizational readiness gaps before they erode post-acquisition value.
AI Due Diligence: Four Pillars
Technology Assessment
A rigorous evaluation of the target's AI and ML capabilities at the technical level.
- — AI/ML model quality and performance benchmarks
- — Data pipeline maturity and reliability
- — Technical debt assessment and remediation costs
- — Scalability architecture and growth capacity
Data Infrastructure
Data is the foundation of every AI system. We evaluate whether it is built to last.
- — Data governance frameworks and enforcement
- — Quality controls and validation processes
- — Retention policies and data lifecycle management
- — Regulatory compliance readiness (GDPR, CCPA, etc.)
Human Factors Analysis
The behavioral science layer that traditional DD misses entirely. This is where deals are won or lost.
- — Team AI literacy and skill gap assessment
- — Adoption readiness and behavioral indicators
- — Change resistance patterns and root causes
- — Cultural alignment with AI-driven workflows
Value Realization Risk
Validating whether the projected AI-driven value creation is achievable and sustainable.
- — ROI projection validation and stress testing
- — Implementation timeline accuracy assessment
- — Competitive moat durability analysis
- — Risk-adjusted return modeling
What You Get
Comprehensive AI Capability Scorecard
Quantified assessment across all four pillars with clear scoring methodology, benchmarked against industry standards and comparable transactions.
Human Factors Risk Assessment
Detailed analysis of adoption barriers, change resistance patterns, and organizational readiness. Includes specific mitigation strategies for each identified risk.
Data Infrastructure Audit
Complete evaluation of data governance, quality controls, compliance readiness, and infrastructure maturity with identified gaps and remediation priorities.
Adoption Readiness Evaluation
Behavioral science-informed assessment of the target organization's capacity to adopt, scale, and sustain AI-driven workflows post-acquisition.
Value Creation Roadmap
Actionable 90-day priority plan for post-acquisition value creation, including quick wins, strategic initiatives, and resource requirements.
Executive Briefing Presentation
Board-ready and IC-ready presentation summarizing findings, risk ratings, and recommendations. Designed for investment committee decision-making.
Risk-Adjusted ROI Projections
Validated financial projections that account for human factors risk, adoption timelines, and implementation complexity. Stress-tested across multiple scenarios.
Frequently Asked Questions
How long does AI due diligence take?
Typically 2-3 weeks for a comprehensive assessment. We can fast-track engagements to align with deal timelines when needed, including expedited 7-10 day assessments for time-sensitive transactions. Timeline depends on target company size, complexity of AI systems, and stakeholder availability.
At what deal stage should we engage?
Ideally during preliminary due diligence, so findings can inform valuation and deal structure. However, AI due diligence can be added at any stage—including post-acquisition to establish a baseline for value creation planning. Earlier engagement gives you more leverage in negotiations.
How is this different from technical due diligence?
Traditional technical DD evaluates infrastructure, code quality, and scalability. Our AI due diligence adds the behavioral science layer—evaluating the people, processes, and cultural factors that determine whether AI investments actually generate returns. We assess adoption readiness, change resistance patterns, and human factors that account for 70% of AI project failures.
What types of transactions benefit most?
Any deal where AI is a significant value driver or where the target claims AI capabilities. This includes technology acquisitions, platform investments, and any transaction where the investment thesis depends on AI-driven growth or operational efficiency. If AI appears in the target's pitch deck, you need AI due diligence.
Can this be combined with other WorkWise services?
Yes. AI due diligence is often paired with our 2-Week AI Readiness Sprint for post-acquisition planning, or with Strategic Consulting for ongoing portfolio company AI transformation. The due diligence findings directly inform the scope and priorities of follow-on engagements.
Schedule Your Consultation
Don't let hidden AI risks erode deal value. Our behavioral science-informed due diligence gives you the full picture before you close.
Related Services
2-Week AI Readiness Sprint
After the deal closes, rapidly assess the acquired company's AI opportunities and build a concrete 90-day action plan.
Portfolio AI Transformation
Comprehensive AI strategy for portfolio companies, including governance frameworks, ROI projections, and long-term roadmaps.
Drive AI Adoption
Psychology-informed training programs that overcome the adoption resistance identified during due diligence.