Business

AI Due Diligence

Definition

A thorough assessment of an AI system or AI-enabled company's technical claims, data practices, compliance posture, model performance, and operational risks—typically conducted in M&A, procurement, or partnership contexts. AI due diligence is a growing practice as AI becomes a critical business asset.

Related Terms

AI Vendor Selection

The process of evaluating and choosing AI technology vendors across dimensions including capability fit, security posture, data handling practices, EU AI Act compliance readiness, pricing, and vendor lock-in risk. Rigorous vendor selection prevents costly replacement cycles.

AI Readiness Assessment

A structured evaluation of an organisation's ability to adopt and scale AI, examining data quality, infrastructure, talent, processes, governance, and culture. Readiness assessments identify gaps and form the evidence base for an AI roadmap and investment case.

EU AI Act

The world's first comprehensive AI regulation, adopted by the European Union in 2024 and phasing in through 2027–2028 (prohibitions from February 2025, GPAI obligations from August 2025, stand-alone high-risk systems from 2 December 2027, and high-risk AI embedded in regulated products from 2 August 2028). It classifies AI systems by risk level—unacceptable, high, limited, and minimal—and imposes obligations proportionate to risk, from outright bans to conformity assessments and transparency requirements.

Related Services

Product Decision Review

Eu Ai Act Compliance

Knowing the Terms Is Step One. Applying Them Is Step Two.

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