Alright, let’s talk about due diligence—a term that’s moved beyond boardrooms into virtual spaces like Twitter, Discord, and Telegram. Whether you’re evaluating Web3 projects, AI products, or a blend of both, due diligence is essential. But what does that mean, really?

Put simply, it’s the homework you do before making decisions. It’s pulling back the curtain to see what’s happening behind the scenes. Think of it as your safety net. In Web3 and AI, where blockchain, NFTs, smart contracts, and machine learning algorithms are redefining the business landscape, due diligence isn’t just a best practice; it’s a necessity.

Newsflash: A 15-Minute Google Search or ChatGPT Session Isn’t Due Diligence

If you think a quick search or a brief AI-generated summary is enough, let me save you from costly mistakes. Real due diligence is more than scrolling through headlines or attending a quick AMA. It’s about digging deep, understanding the people and technology behind the project, and getting a full picture before you commit.

This article will outline a comprehensive due diligence framework for Web3 and AI. At the end, you’ll find three resources to guide your efforts, but before you jump ahead, let’s go through the basics—understanding what many people get wrong and how to avoid their mistakes.

Imagine buying a house after a quick walkthrough. You’d be looking at more than the fresh paint—you’d be examining the foundation, plumbing, and neighborhood. Skipping this groundwork in Web3 and AI is like signing up for a roller coaster ride blindfolded.

Foundations of a Smart Due Diligence Strategy

So, how do you go beyond the basics? Here’s a roadmap to help you avoid the pitfalls of hype and fear of missing out (FOMO).

1. People First: In decentralized spaces like Web3, people still matter. Even in AI, where algorithms do the heavy lifting, human decisions drive outcomes. Vet the team. What’s their track record? Do they stick with projects through tough times, or do they vanish when the going gets tough? Research the founders and developers as rigorously as you’d check a restaurant’s kitchen if you were allergic to peanuts.

2. Understand the Tech: You don’t need to be a developer, but you should grasp the basics. Is the project’s code open-source? Has it been audited? Who can access or modify the AI model? For AI projects, look into data sources, transparency, and ethical practices. If you’re not familiar with the technical jargon, get someone on board who is. Having many eyes on the tech builds security and trust.

3. Ethical and Regulatory Standards: The regulatory landscape for both Web3 and AI is evolving rapidly. Make sure the project adheres to current regulations—and anticipate future changes. Web3’s decentralized ethos sometimes skirts regulation, and AI can face scrutiny for privacy and ethical concerns. Look into how the project aligns with laws in your country and abroad to avoid potential legal headaches.

4. Algorithmic Transparency and Data Integrity: In AI, it’s not just about the tech—it’s about trust in the algorithms and data used. Understand the data behind the model. Does it come from reputable sources? Is the AI model transparent, allowing you or experts to understand how it reaches conclusions? Knowing this can protect you from unexpected biases or inaccuracies.

5. Security and Code Audits: Blockchain technology in Web3 has strengths, but not all projects maintain high-security standards. Ensure the project’s code has undergone thorough audits. AI systems also benefit from security scrutiny—know how the data is handled and stored, especially if it involves sensitive or personal information. A solid audit can expose vulnerabilities before they become issues.

6. Community and Developer Ecosystem: A project’s community often indicates its stability and potential longevity. Check forums, social media, and developer communities. Are developers actively working on the project? Does the community engage positively, or are there signs of dissent or lack of support? For AI, a strong ecosystem of developers and user feedback can signify trust and adaptability.

7. Risk Management: Both Web3 and AI carry inherent risks—mitigate them by setting limits and understanding the worst-case scenarios. Know how much you’re willing to invest and lose. If something seems too good to be true, it likely is. You’re better off walking away than diving into a project you don’t fully understand.

Due Diligence as Your Seatbelt for a Fast-Paced Digital World

Think of Web3 and AI as thrilling roller coasters: fast, exciting, and unpredictable. But like any roller coaster, you need a seatbelt. Due diligence is that seatbelt, your reassurance that even if things go sideways, you’ve protected yourself as much as possible.

So, next time you hear about a new token, DAO, or “groundbreaking” AI, resist the urge to dive in based on excitement alone. The real winners in these fields aren’t those who jump the fastest—they’re those who proceed with caution and insight.

Wrap-Up

In Web3 and AI, due diligence is your compass in the decentralized wilderness. Do your research. Ask tough questions. And remember: the biggest risk in these fields is not asking questions.

Three Due Diligence Approaches

Here are three professional services that specialize in Web3 and AI due diligence, covering billions of data points across categories. Working with an experienced lawyer or a due diligence specialist can also be beneficial.

• Thomson Reuters CLEAR

  • URL: https://legal.thomsonreuters.com/en/insights/articles/due-diligence-business-investigations-checklist

• Nexis Diligence™

  • URL: https://www.lexisnexis.com/en-us/professional/risk-management/nexis-diligence-plus.page

• AI Due Diligence Background Prompt: If the stakes are lower and you’re looking for a quick background check, use this AI prompt:

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"Conduct an in-depth background check on the individual or business entity described below. Your investigation should cover the following: 

[Insert Name or Company and URL. If you’re using ChatGPT4o pro, click the search feature]

1/ Legal History: Identify any past, pending, or potential legal issues, including criminal, civil, or administrative cases. This includes, but is not limited to, charges or allegations of fraud, theft, conspiracy, sexual misconduct, or any other wrongful conduct.

2/ Business Reputation & Financial Health: Review their business dealings, financial stability, and reputation within their industry and community. Highlight any bankruptcies, insolvencies, or other red flags.

3/ Online & Offline Presence: Analyze their digital footprint, including social media, news articles, and any public records. Cross-reference this with offline sources such as court records and professional certifications or licenses.

4/ Affiliations & Associations: Investigate any known business partners, professional connections, or associations that could impact their credibility or expose potential risks.

5/ Risk Indicators: Summarize any patterns of behavior or actions that suggest they may be a high-risk individual or entity to engage with in business or legal matters.

Deliverables: Provide a clear and concise due diligence report, broken down into key sections with headings and subheadings. Ensure the analysis is easy to understand, and include links and references where applicable for further verification."

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A surgical AI-powered and trained robot, armed with nothing but hours of video footage, learned to perform complex medical procedures with the precision of a seasoned surgeon. No hands-on training, no step-by-step programming—just pure observation. Sound familiar? It should, because that’s the future for us lawyers. Researchers at Johns Hopkins University just pulled off something remarkable. They trained a robot to master surgery, not by holding its “hand” through the motions, but by letting it watch. This machine, the da Vinci Surgical System, absorbed and replicated critical tasks—needle manipulation, tissue lifting, suturing—all at a skill level equal to human surgeons. Let that sink in. Here’s how it works: the team fed the robot hundreds of videos from da Vinci’s own wrist cameras, essentially teaching it to “speak” the language of surgery through math and movement. We’re talking ChatGPT meets kinematics—a language of skill and technique distilled down to pure, actionable data. The kicker? The robot even started catching and correcting mistakes on its own, like picking up a dropped needle—something it was never programmed to do. It’s adaptability in action, and it’s mind-blowing. Now, here’s where we need to pay attention. AI systems like Google’s AI Studio aren’t just for the operating room. They’ll watch and listen to lawyers too. These systems will study the arguments, presentation styles, even the pauses and tones that seasoned trial lawyers use. They'll dissect every move, every phrase, every nuance. And just like that robot learning to suture, these systems will be able to craft legal arguments and perform in courtrooms with an accuracy and finesse that we’re only just beginning to imagine. We’re already using Google AI Studio to evaluate our presentations and I wrote about it in an earlier post here in the group. So, don’t shoot the messenger. As these AI “assistants” become sharper, faster, and more perceptive, we’ll need to bring our A-game—because now, we’re competing with machines that don’t just learn the law; they learn from us, down to the last word, the last breath. See the full article here and video here https://hub.jhu.edu/2024/11/11/surgery-robots-trained-with-videos/

Listen to past podcast episodes here https://mitch-jackson.com/podcast

In this episode, we dive into how a Trump administration could reshape the legal tech landscape. We'll explore how potential deregulation may spark faster innovation in AI and legal tech but raise ethical questions around oversight. We'll discuss how restrictive immigration policies could impact talent acquisition, underscoring why diversity is essential for ethical AI development. Trade disputes and shifting supply chains could also disrupt the sector, creating new challenges—and opportunities. Tune in to learn why staying informed and embracing technology is key for legal professionals navigating this rapidly changing landscape.

Listen to past episodes here https://mitch-jackson.com/podcast

Ready to elevate your pitch and start closing deals like a pro? In this episode, attorney Mitch Jackson shares three game-changing strategies that will transform the way you present, pitch, and persuade. Whether you’re convincing a client, winning over a judge, or sealing a deal, these tactics are designed to make you better—and they’re backed by years of real courtroom success.

But here’s the kicker: these aren’t just theoretical tips. These are proven techniques Mitch’s law firm has used to win million-dollar cases, and they’ll work wonders in any high-stakes pitch. From fine-tuning your delivery to adding an AI-driven edge, you’ll learn a powerful three-step method to refine your message and build trust. And with Mitch’s tips on using AI to supercharge your prep, you’ll get the precision and polish you need faster than ever.

Why You Need to Listen:

• Discover a unique three-step technique that transforms raw pitches into polished presentations.
• Learn how to harness AI to get instant, actionable feedback on your performance.
• Get insider tips used by top attorneys to win big in court, now reimagined to help you succeed in business.

This episode is packed with insights to make your message hit home, every time. Listen now and start pitching with purpose, confidence, and a winning edge.

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Read the entire article, get specific steps and grab links and the AI prompt here (in case the link doesn't work, see the November 6, 2024 newsletter issue on Mitch's LinkedIn profile) https://www.linkedin.com/pulse/3-surprising-strategies-elevate-your-pitch-seal-more-ai-mitch-tbb4c/?trackingId=3qDstFPSSgSgmT64nc1mqw%3D%3D

Past episodes https://mitch-jackson.com/podcast 

One year ago, President Biden signed a landmark Executive Order, positioning America to lead the charge in both harnessing the promise of artificial intelligence and addressing its inherent risks. This directive called for a sweeping array of actions to tackle AI’s safety and security risks, safeguard Americans’ privacy, advance equity and civil rights, protect consumers and workers, promote innovation, and solidify American leadership on the global stage.

Today, on the one-year anniversary, the Biden-Harris Administration announces that federal agencies have executed over one hundred tasks directed by this Executive Order—each completed on schedule. In this episode, we’re unpacking the administration’s most impactful accomplishments over the past year, diving deep into how these initiatives are shaping the future of AI in America. From crafting robust guidelines for security and transparency to launching ambitious programs on privacy and international collaboration, these efforts mark a transformative year for AI governance.

Join us as we explore what’s working, where challenges remain, and how this approach is setting a new standard for ethical AI worldwide. Whether you’re an AI enthusiast or simply curious about its societal impact, this episode offers an in-depth look at the evolution of responsible AI and the road ahead.

Read the update here.

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Past episodes https://mitch-jackson.com/podcast

Mitch's book "AI In Law" https://mitchjackson.xyz

What happens when a respected judge trades the bench for a Beavis and Butt-Head tee, and the courtroom for TikTok? You get “Sal Tortorella”—the alter ego of Bergen County Judge Gary N. Wilcox, who’s made waves for his eyebrow-raising lip-sync performances. In this episode, we’re diving into the New Jersey judge’s whirlwind TikTok saga that went from “innocent fun” to a three-month unpaid suspension.

Judge Wilcox, a Harvard grad and former prosecutor, didn’t quite see the harm in miming lyrics about gang violence and romantic escapades. The ethics board, however, saw it differently. Without passing any judgment whatsoever, we’ll dissect the ethics complaint, Wilcox’s creative choice of backdrops (chambers, courthouse hallways, and even his bed), and the videos themselves—where “Sal” took center stage in judicial robes and pop culture tees, lip-syncing to tracks that would make even seasoned DJs blush.

Join us as we unpack this quirky case that has everyone asking: Where does harmless fun end, and judicial decorum begin? Tune in for a tale of TikTok mishaps, courtroom repercussions, and one judge’s brush with the social media limelight.

Listen to past episodes here https://mitch-jackson.com/podcast

Connect with Mitch on LinkedIn https://linkedin.com/in/mitchjackson

In this episode, we’re diving into one of the most overlooked yet powerful skills in business: understanding personality. Whether you’re closing a deal, negotiating a contract, or simply aiming to connect with someone on a deeper level, knowing what drives them can make all the difference.

Imagine this: you’ve got an offer that’s rock-solid on paper. But here’s the kicker—how do you frame it so it resonates with the person across the table? People aren’t just business titles; they’re layered with unique personality traits that influence how they respond, what makes them tick, and what seals the deal. Some are data-driven analysts, others thrive on building relationships, while some are fueled by competition or creativity. Your approach has to match that mix if you want to leave a lasting impression.

We’ll explore AI-powered tools to read and analyze personalities, using frameworks like the Big Five or DISC to break down the traits that shape communication styles and motivations. By tapping into this tech, you can get an insightful edge, helping you build rapport faster and tailor your interactions to align perfectly with what matters most to them. Plus, we’ve got a custom AI prompt for you to try that brings this concept to life, giving you a step-by-step guide to understand and connect with any personality you encounter.

So, tune in and find out how to make your interactions not just effective but unforgettable. This isn’t just about closing a deal; it’s about opening the door to meaningful, lasting relationships in business.

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Read the full article and see the actual prompt here https://www.linkedin.com/pulse/art-reading-personalities-using-ai-craft-tailored-hit-jackson-esq--lnuqc/

Listen to past podcast episodes here https://mitch-jackson.com/podcast

AI’s power to influence our lives—both positively and negatively—has never been more evident. In this episode, we explore a tragic case that raises urgent questions about the influence of AI on vulnerable minds. A Florida mother has filed a wrongful death lawsuit against Character.AI, claiming that the platform’s chatbot interactions contributed to her 14-year-old son’s suicide. The allegations paint a chilling picture of how AI can blur the lines between reality and fiction, with devastating consequences. This case has sparked a larger conversation about how AI’s influence extends far beyond entertainment, raising critical concerns about user safety, ethics, and regulation.

We’ll break down the legal arguments, discuss Character AI’s response, and delve into the broader implications for all of us living in an AI-driven world. The case underscores the power AI holds to shape thoughts, behaviors, and emotions, especially for vulnerable users, and highlights why comprehensive industry standards are more necessary than ever.

More past episodes at https://mitch-jackson.com/podcast

We also did a deep dive on Perplexity on all these issues here https://www.perplexity.ai/page/character-ai-teen-suicide-laws-QverdOSQQAuVQXhrohImDQ

What happens when AI threatens to reshape entire industries—and not in a good way? Over 11,500 artists, including big names like Kevin Bacon, Thom Yorke, and Julianne Moore, have signed a petition against AI companies scraping their creative work without permission. This episode dives into the growing movement pushing back on AI data scraping, spearheaded by British composer Ed Newton-Rex, and why celebrities and major creative organizations are taking a stand.

We’ll explore the impact AI-generated content is having on the livelihoods of artists, musicians, and writers. With the generative AI art market booming and projections reaching $5.84 billion by 2032, is human creativity being devalued? Artists report feeling violated as their work gets used to train AI models—without consent or compensation. In this episode, we dig into how this could reshape artistic careers and what legal battles are on the horizon.

From the courtroom to the boardroom, AI companies are now facing serious copyright infringement lawsuits, including high-profile cases brought by the New York Times and Getty Images. We’ll break down the key legal issues at play—data ownership, copyright claims, and whether AI training data falls under “fair use.”

Legal experts weigh in on what’s next for the future of AI and creative industries. Will this be a turning point in AI regulation? Tune in to hear the latest insights on this unfolding clash between tech innovation and creative rights. Don’t miss this episode—it’s one you’ll want to hear if you care about the future of creativity in the age of AI.

Listen now and stay ahead of the curve!

Past episodes at https://mitch-jackson.com/podcast

LinkedIn Legal/Biz "AI, Web3 and Metaverse" newsletter https://bit.ly/mitch-linkedin

Mitch Jackson, Esq. https://mitch-jackson.com

A winning offer isn’t just a pitch—it’s your handshake, reputation, and business future all wrapped into one. But in today’s world, it’s not enough to simply throw out a deal and hope it sticks. You need to craft offers that speak directly to your audience’s needs, and this episode shows you how to do just that—with the power of AI.

In this episode, my team will reveal the same strategies we use to help clients close six- and seven-figure deals. You’ll learn how to use AI to design offers that are crystal-clear, packed with value, and tailored to the other party’s pain points. We’re talking about creating offers that don’t just close deals—they build lasting relationships.

We’re breaking down the essential elements of a perfect offer: clear objectives, specific terms, and a compelling value proposition. And here’s the best part: we’ll show you how to leverage AI to supercharge your process, so you can craft offers that are impossible to refuse—all with a single, powerful prompt.

By the end of this episode, you’ll have the inside track on building offers that move the needle. Plus, we’re sharing our Ultimate AI “Offer” Writing Prompt, an exclusive template that will have you closing deals with precision and confidence. We'll share the link below.

Ready to start closing deals faster and smarter? Tune in, take notes, and let our team give you the tools to create offers that win—every time.

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Full article and template AI prompt here https://www.linkedin.com/pulse/how-use-ai-create-perfect-offer-sell-your-product-mitch-jackson-esq--vubmc

Past episodes https://mitch-jackson.com/podcast

For over three decades, I’ve been in the trenches—negotiating high-stakes cases, closing deals, and winning over even the toughest clients. Now, I’m sharing the same strategies that have turned countless ‘no’s into ‘yes’s, on LinkedIn, but with a twist: artificial intelligence.

In this episode, my AI assistants, Stephanie and Eric, introduce my new project- new weekly posts on LinkedIn sharing how AI is revolutionizing negotiation and sales while enhancing, not replacing, the human touch. From data analysis that shapes your strategy to real-time sentiment tools that help you read the room like never before, you’ll get actionable tips each week to stay miles ahead of the competition. Whether you’re closing a seven-figure deal, crafting the perfect pitch, or navigating the delicate aftermath of a failed sale—I'll make sure to share something on LinkedIn for you.

In this chat, Eric and Stephanie break down key topics like:

• Predictive Analytics: Imagine having a crystal ball that helps forecast deal outcomes and client reactions.

• Sentiment Analysis: Learn how to detect the emotional tone in emails, pitches, or calls, so you can adjust in real-time.

• Language Assistance: Create persuasive, impactful communications that hit all the right notes.

Accordingly, each tip I share on LinkedIn comes with real-world examples and steps you can apply today—no fluff, no filler, just strategies that work.

So if you’re ready to harness AI to give your negotiation and sales game a serious edge, this is the episode you don’t want to miss. Because negotiation isn’t about AI replacing you—it’s about using AI to supercharge what makes you unbeatable.

Past podcast episodes here https://mitch-jackson.com/podcast

Negotiation and sales AI-driven tips each week on LinkedIn here https://linkedin.com/in/mitchjackson