Artificial intelligence is fundamentally changing restructuring advisory. From automated financial analysis to scenario modelling and accelerated due diligence -- we show how AI tools can support the IDW S6 process, where their limits lie and why the human element in crisis management remains irreplaceable.
The AI Co-Pilot for Restructuring Professionals: Planning with Algorithms
When a company enters a crisis, every day counts. The restructuring adviser must analyse the situation in the shortest possible time, run scenarios, convince creditors and present a viable restructuring concept. Until now, this has been a largely manual process characterised by Excel models, personal experience and intense working days. Artificial intelligence is now fundamentally changing this way of working -- not as a replacement for the adviser but as a powerful co-pilot that raises the speed, depth and quality of restructuring work to a new level.
According to the AlixPartners 2025 Turnaround & Transformation Survey, almost 80 per cent of leading restructuring experts in Europe regard the rapid advances in AI technology as an opportunity for companies in distress. At the same time, the McKinsey State of AI 2025 study shows that 88 per cent of surveyed organisations use AI regularly -- but only one third have scaled their AI programmes across the enterprise. For the restructuring industry, this represents both an opportunity and a cautionary tale.
AI in the Restructuring Process: Where Algorithms Can Help
Automated Financial Analysis
The first phase of any restructuring is the assessment: what is the company's financial position? Traditionally, this means weeks of work on annual accounts, management reports, bank statements and contracts. AI-powered tools can significantly accelerate this process:
- Automatic extraction of relevant financial metrics from unstructured documents (PDF annual accounts, bank statements, contracts)
- Anomaly detection: algorithms identify irregularities in financial data that may indicate fraud, mispostings or hidden risks
- Trend analysis: machine learning recognises patterns in historical data and can identify early warning indicators of deteriorating liquidity or profitability
- Benchmarking: automatic comparison of company metrics against industry averages and competitors
According to the KPMG Guide on AI and Automation in Financial Reporting, companies are increasingly deploying AI to close books faster, cut errors and produce clearer reports. In the restructuring context, this means what previously took weeks can be completed in days.
Scenario Modelling and Forecasting
The centrepiece of any restructuring concept is the integrated financial plan with multiple scenarios. This is where AI unfolds particular potential:
- Dynamic scenarios: instead of rigid Excel models with three scenarios (best case, base case, worst case), AI enables the simulation of hundreds of scenarios considering multiple parameters simultaneously
- Monte Carlo simulations: probability-based modelling of liquidity development under uncertainty
- Sensitivity analyses: automatic identification of the levers with the greatest impact on restructuring viability
- Real-time updating: models that adjust automatically as new data becomes available
Modern FP&A platforms such as those from Drivetrain or Datarails already offer AI-powered financial modelling that can be adapted for restructuring purposes. Specialised solutions like Valid8 Financial focus specifically on AI-powered data extraction and fund tracing in the restructuring context.
Accelerating Due Diligence
In restructuring situations, due diligence is particularly time-critical. AI can contribute significantly here:
- Contract analysis: Natural Language Processing (NLP) searches hundreds of contracts for relevant clauses -- change-of-control provisions, termination rights, MAC clauses, security interests
- Risk identification: automatic detection of legal risks, compliance breaches and regulatory issues
- Document classification: sorting and prioritising data room documents by relevance
- Summarisation: automatic creation of executive summaries from extensive document collections
Communication and Report Drafting
Communication with creditors, shareholders and courts requires precise and persuasive documents. AI co-pilots can assist by:
- Drafting restructuring reports, creditor letters and negotiation positions
- Translating complex financial data into accessible narratives
- Consistency checking across multiple documents
- Formatting and structuring in accordance with recognised standards
Integration into the IDW S6 Process
The IDW Standard S6 defines the requirements for restructuring concepts in Germany and is thus the central reference framework for professional restructuring work. A restructuring opinion pursuant to IDW S6 typically comprises, according to the Roedl & Partner guide:
- Description of the company and its economic situation
- Analysis of the causes of the crisis and the stage of distress
- Presentation of the vision for the restructured company
- Action plan with concrete restructuring steps
- Integrated financial planning (income, balance sheet, liquidity)
- Statement on restructuring viability
AI can provide support in virtually every one of these steps:
| IDW S6 Module | AI Support |
|---|---|
| Assessment | Automated financial analysis, benchmarking |
| Crisis cause analysis | Pattern and anomaly detection |
| Vision development | Market and competitive analysis |
| Action planning | Prioritisation by impact lever |
| Integrated planning | Scenario modelling, sensitivity |
| Viability statement | Consistency checking, plausibility review |
Available AI Tools: An Overview
General Large Language Models
GPT-4, Claude, Gemini and comparable models serve excellently as universal tools for text analysis, summarisation and draft creation. Their strength lies in processing unstructured information and generating reports. Their weakness: they are not specialised financial tools and can make errors in complex calculations.
Specialised FinTech Solutions
- FP&A platforms (Datarails, Drivetrain, Planful, Anaplan): offer AI-powered financial modelling, budgeting and scenario planning
- Due diligence tools (Kira Systems, Luminance): specialised in contract analysis and document review using NLP
- Restructuring-specific solutions (Valid8): focus on fund tracing and forensic analysis
- Project management tools (Nordantech Falcon): specifically tailored to restructuring projects following IDW S6
In-house Developments and Customisations
Many advisory firms are developing internal AI tools tailored to their specific workflows. These can range from simple prompt libraries and customised models to fully integrated workflow automations.
Limitations and Risks: Where the Human Element Remains Irreplaceable
Despite the enthusiasm for AI's possibilities, its limitations must be clearly understood -- particularly in the sensitive field of restructuring advisory:
Professional Duty of Care
The restructuring adviser owes the client a service that meets recognised professional standards. Section 675 of the German Civil Code (BGB) (paid business management) in conjunction with Sections 276 and 280 BGB establishes liability for breaches of duty. Anyone who blindly relies on AI-generated results without independently reviewing and validating them may be violating their duty of care. The ultimate responsibility for the professional accuracy of a restructuring opinion always lies with its author -- not with the algorithm.
Hallucinations and Errors
Large language models can produce plausible-sounding but factually incorrect results (hallucinations). In a restructuring opinion that serves as the basis for multi-million lending decisions, such errors can have catastrophic consequences. Every AI-generated result must therefore undergo critical human review.
Confidentiality and Data Protection
Restructuring projects involve highly sensitive corporate data. The use of cloud-based AI tools raises significant questions:
- Data protection admissibility of processing under the GDPR
- Contractual confidentiality obligations towards the client
- Professional secrecy obligations for legal professionals
- Risk of data leakage to third parties or AI training models
The Human Factor in Crisis Management
Perhaps the most important insight: restructuring is to a considerable extent people work. Successful turnarounds require:
- Negotiation skills when dealing with creditors anxious about their claims
- Empathy towards employees whose jobs are at risk
- Political acumen for the dynamics in shareholder meetings and creditor committees
- Creativity in developing unconventional restructuring solutions
- Assertiveness in implementing painful measures
- Trust: crisis situations demand personal credibility that no algorithm can replace
Best Practices for Deploying AI in Restructuring
Based on experience to date and McKinsey's insights on AI scaling, we recommend the following principles:
1. AI as a Tool, Not a Replacement
AI tools should be deployed to accelerate and deepen the adviser's work -- not to replace it. The adviser remains the pilot; AI is the co-pilot.
2. Validation First
Every AI-generated result must be validated by a qualified professional before use. This applies in particular to:
- Financial metrics and forecasts
- Legal assessments
- Statements on restructuring viability
3. Ensure Data Security
- Use on-premise or private cloud solutions for sensitive data
- Establish clear data processing agreements with AI providers
- Anonymise or pseudonymise personal data before AI processing
4. Maintain Transparency
Restructuring opinions should disclose when AI tools have been used to support the analysis. This strengthens credibility and aligns with the principles of proper expert opinion practice.
5. Build Competence
Restructuring teams should invest in the competent use of AI tools. The best results are achieved by advisers who bring both professional expertise and an understanding of the possibilities and limitations of the AI tools deployed.
Outlook: The Future of AI-Assisted Restructuring
The development is only just beginning. In the years ahead, we can expect:
- Agentic AI: autonomous AI systems that handle more complex tasks independently and coordinate interim results with the adviser
- Real-time monitoring: AI-powered early warning systems that detect crisis developments before they become acute
- Standardisation: integration of AI tools into recognised industry standards for restructuring
- Regulation: legal frameworks for the deployment of AI in professional advisory, particularly in the context of the EU AI Act
The AlixPartners study puts it succinctly: AI is increasingly viewed not merely as valuable but as potentially critical to survival for companies in distress. For restructuring advisers, this means: those who fail to master the new tools will fall behind competitively. But those who deploy them wisely -- as a co-pilot, not an autopilot -- can deliver decisive added value for their clients.
At compleneo, we combine longstanding restructuring experience with a clear commitment to technological innovation. We deploy AI tools where they demonstrably improve the quality and speed of our work -- while preserving the personal advisory quality that is indispensable in crisis situations. Get in touch.
