Streamlining HSR Second Requests: How Generative AI May Revolutionize the Merger Clearance Process

The Hart-Scott-Rodino (HSR) Act's second request process is a significant challenge for attorneys, requiring extensive document production and data analysis for antitrust reviews by the Federal Trade Commission or U.S. Department of Justice. The integration of generative AI into the merger review process offers significant potential to transform M&A transactions by automating labor-intensive tasks, enhancing decision-making, and increasing transparency. 

Traditional methods used to respond to second requests are proving inadequate due to the increasing volume and complexity of data. Generative AI offers innovative solutions by automating key aspects of data analysis, document review, and compliance checks, reducing the time and effort required to respond to second requests. It can also be used for predictive analytics to anticipate focus areas of second requests, minimizing back-and-forth with regulatory agencies. Additionally, generative AI can automate the identification of privileged documents and the creation of privilege logs, saving significant time and reducing human error. As the FTC introduces new guidelines that make second requests more complex, adopting AI solutions will be essential for companies to navigate these challenges efficiently.

In an article published by Law360, leaders of BDO’s Forensics Practice explain how generative AI can process and analyze vast amounts of documents with high accuracy, helping legal teams compile necessary documentation swiftly and reducing response times.