AI Technology Improves Due Diligence Expertise

Summary: 

In this case study, Unilever significantly enhanced its due diligence process for an M&A transaction by employing DocuSign Insights, an AI-powered contract review platform. The technology enabled the company to review contracts more than 20 times faster than manual methods, saving approximately 6,500 human hours, and increasing data accuracy by 18%.

About the company’ business:

Unilever PLC, a renowned fast-moving consumer goods manufacturer and supplier, offers a diverse range of products including food items, beauty and personal care products, beverages, home care products, as well as vitamins, minerals, and supplements. Established in 1929, Unilever is based in London, UK.

Problem Statement:

Unilever needed to review approximately 18,000 contracts concerning 20 essential data points for an M&A transaction. Initial estimates indicated that a complete manual review would demand about 9,000 hours of work, equivalent to the effort of 19 full-time employees.

This situation prompted Unilever to consider leveraging technology for a transformative approach to the agreements review process.

Results:

• A saving of approximately 6,500 human hours on the M&A project compared to a complete manual review.
• The transaction process was about 70% faster in completing the review using AI technologies compared to what a full manual review could have achieved.
• The company managed to review 20 times more documents than in a manual review at a similar cost and within a shorter time frame.
• There was an 18% increase in data accuracy compared to the accuracy achieved through human review.

AI Solution Overview:

Unilever employed DocuSign Insights, a leading AI contract review platform already integrated into their technology infrastructure. DocuSign Insight utilizes advanced AI technologies such as natural language processing, ML, and rules-based logic to analyze agreements within enterprises, particularly in the context of M&A transactions.
The implementation of DocuSign Insights in Unilever’s legal review process enabled the analysis of required outcomes and the development of a hybrid approach. This approach involved combining human quality assurance and validation with an AI extraction process.
In this scenario, AI initially conducted a comprehensive review of each contract to automatically extract relevant data points. Subsequently, human reviewers validated all outputs, followed by an additional quality check by senior lawyers to ensure data accuracy.
To further enhance accuracy, a list of all pertinent Unilever entities was compiled. Custom logic was then integrated into the platform to incorporate this list, enabling the AI model to specifically identify these entities within the broader party review.

References:

• AI for large-scale due diligence exercises. Unilever case study. https://syke.tech/blog/ai-for-large-scale-due-diligence-exercises-unilever-case-study/

Industry: Legal

Vendor: DocuSign

Client/Clients: Unilever