TECH & AI17 September 2026· 16 min
AI Due Diligence: Complete Methodology for Investment Funds in 2025
As AI-driven startups capture 35% of global VC deal flow, traditional due diligence frameworks are dangerously inadequate. This guide delivers a battle-tested, 7-pillar methodology with quantitative scoring rubrics, real case studies, and prioritized recommendations to help funds separate genuine AI from sophisticated theater.
SOURCES
[1]CB Insights — 'State of AI Report 2024: Venture Funding, Failure Rates, and Emerging Verticals' (Q4 2024)
[2]PitchBook & Stanford HAI — 'AI Investment Patterns and Due Diligence Practices Survey' (2024)
[3]Dealroom.co — 'Global AI VC Funding Report H1 2024' (July 2024)
[4]European Commission — 'EU Artificial Intelligence Act: Official Text and Implementation Guidelines' (OJ 2024/1689)
[5]NIST — 'Artificial Intelligence Risk Management Framework (AI RMF 1.0)' and 2024 Generative AI Profile (NIST AI 600-1)
[6]Docket Alarm / Lex Machina — 'AI Litigation Trends Report 2024: Data IP and Model Liability' (2024)
[7]RedPoint Ventures — 'Foundation Model Risk in Portfolio Companies: A 2024 Analysis' (Internal research note, widely cited, 2024)