Using AI Due Diligence reports

Disclaimer

The AI Due Diligence reports are generated using Diligent's AI technology. While it helps identify potential risks, it should be treated as a starting point for further investigation. The AI may occasionally generate incorrect information or draw incomplete conclusions. Human review and verification are essential for effective due diligence.

The AI-powered due diligence reports consolidate key risk data from global sanctions watchlists, politically exposed persons (PEPs) databases, and adverse media sources to provide a holistic view of third-party risk.

The due diligence services include specialized assessments tailored to specific risk areas, such as environmental, social, and governance (ESG), and human rights. For deeper insights, Enhanced Due Diligence (EDDClosed Enhanced Due Diligence is a fee-based, 'boots on the ground' investigation with an investigator in country.) and Open Source Investigations (OSIs) assess risk and verify details through comprehensive research, ensuring robust compliance and oversight throughout the supply chain.

Before you start using the AI due diligence reports, ensure the feature is enabled. For more information, see Setting up AI services (EAP).

Using the AI due diligence reports feature

To generate the AI due diligence report, follow these steps:

  1. Open the Third-Party Manager dashboard and from the left navigation panel, select the Third Party Management.

  2. Select List, and then select a third-party profile.

    The Record Detail view appears.

    1. Select the AI Report button to generate the AI due diligence report.

      An in-app notification will display at the top-right corner of the screen, indicating that the report generation has started, then an email will be automatically sent to the linked email address with the subject line AI Due Diligence Report for <client name> (ID:<client IDClosed Used in the API. A public identifier for apps which should not be guessable.>) initiated.

      Once the report is successfully generated, the in-app notification displays stating that the report generation is complete, and a caseClosed Assigned to a third party profile related to a questionnaire sent for response, due diligence investigation, or other action. folder is auto-created in the Due Diligence tab. You can either select open the case folder or view the report from the same notification. An email will be automatically sent to you with the subject line AI Due Diligence Report for <client name> (ID:<client ID>) generated. You can download the report using the link in the email.

      Alternatively, you can also download the report from the auto-created case folder under the Due Diligence tab within the third-party Record Detail view, by selecting the download icon under the Action tab for that record. The AI due diligence report will download in your system and the default file name is AIDD-<third party name>-<third party number>.

Key features of the AI Due Diligence report

The Due Diligence Report provides a structured, data-driven view of risk associated with a subject, for example, a company like Microsoft. It is designed to help you quickly identify, assess, and prioritize potential compliance, regulatory, and reputational risks using AI-assisted analysis.

The following are the key features of the report in a sequence:

  1. Header insights

    The report header has been designed to surface critical information upfront for faster decision-making. The elements include:

    1. Subject details (name, profile ID, region, date)

    2. Risk ratingClosed The risk assessment history which changes over time based on the risk model assigned and other factors. Details include how the relationship is categorized, the services provided, the country risk, due diligence questionnaire responses, and custom fields.

    3. Highest Risk Country Associated. This fieldClosed A field is a way to input information, often a question. highlights the most relevant geographic exposure

  2. AI-generated Risk Overview

    This section summarizes key risk categories, including sanctions or watchlist exposure, criminal or anti-competitive behavior, ethical concerns, litigation, and financial risks, and provides an updated statusClosed Third-party Status used for searching, for example, Active or Inactive. Approval Status is a subset of the Status. See Approval Status. Case Status used for searching, for example, Only Open Cases or Only Closed Cases. for each, indicating whether a risk has been identified or not.

  3. Structured and list-based risk presentation

    1. List Hits View consolidated databases and sources where the subject appears. This helps identify the level of exposure across regulatory and monitoring systems. Under Sanctions / Embargoes / Watchlist, you can review official listings, enforcement actions, and regulatory notices such as government enforcement databases, regulatory proceedings, watchlists, and warning notices.

    2. Events (Timeline View) Assess the events with a chronological listing of relevant incidents and developments along with the datestamp. The events are categorized by risk types and includes a brief description of the event, source links, and publication dates.

  4. Appendix for faster reference

    The appendix has been structured to align with how you can typically assess risk in order of information, Watchlist hits (priority) and Adverse media hits. This approach ensures that formal regulatory or enforcement risks are reviewed before less formal media-based signals.

  5. Disclaimers

    Disclaimers are consistently placed throughout the report to ensure transparency and proper usage.

FAQ

Who can access and use the AI due diligence report feature in 3PM?

To access this feature, reach out to your Customer Support Manager (CSM) who can help you enable it or send an email to support_3pm@diligent.com, the support team can enable the feature for you.

Once the feature is enabled, a notification displays next time you log in. The notification provides an overview of the capabilities and redirects you to your Settings page. There, you can review and agree to the terms and conditions for the AI Due Diligence Report feature in the AI Services section. After you agree, the Create AI Due Diligence Report button displays in your third-party profile’s Record detail page.

What languages does the AI due diligence report support?

The feature currently only supports English.

Can I opt out of this feature?

Yes, you disable the AI due diligence report feature by following these steps:

  1. In the Third-Party Manager dashboard, select Settings and then select the AI Services tab.

  2. In the AI Services tab, select Disable next to the AI Due Diligence Report.

Alternatively, you can reach out to your CSM or contact support at support_3pm@diligent.com to opt out.

What kind of training or support is available for using the feature ?

You can read important information about the new feature from the Learn More section within it. Our support and customer success teams are also available to assist with any questions or concerns.

Can I provide feedback on this feature?

Yes, you can. We welcome feedback from our users. You can submit your feedback at support_3pm@diligent.com.

Why does the AI due diligence report generation fail?

The report is dependent on a robust solution called Risk Intelligence Database (RID) that manages crucial risk metadata across risk areas that are consolidated into the report. An issue on the service provider side may prevent the AI services that collate and summarize risk insights from returning an appropriate response that contains the report URL. This causes a report generation failure. Failure is likely with fewer than 5 percent of generated reports.

You are promptly notified when a report generation fails. A record is also created in the audit log at the time of the failure, enabling you to track the failure.

If a report generation fails, try re-initiating the generation to obtain a successful report.