“U.S. Adults spend 11 hours and 27 minutes per day connected to media.[1]”
In this day and age, it would not be incorrect to say that Artificial Intelligence (AI) and Humans are joined at the hip.
AI tech is revolutionizing our world every day. If you think you are not AI-dependent, think again! We all use smartphones, navigation and travel applications, and social media platforms. Then again, do we realise how AI plays a big role in making these tools useful? From the feeds that you see in your social media accounts’ timeline to the notifications that you receive from these apps, everything is curated by AI. [2]
We are almost addicted to tech in our personal lives. It is only sensible that we make the best use of this tech in our offices the same way. We live in a society of immediacy where our patience wears thin within seconds. And that of our clients’ certainly runs out faster in comparison.
What can in-house corporate legal teams do to tackle the increasing contract volume with no additional resources?
Using AI tech is the answer! AI-powered tools available today are not only best suited for routine contract reviews but can also help organizations maximize their efficiency by, for instance capturing billable time spent reading and responding to emails.[3] The scope of these tools is beyond imagination.
AI and the Contract Analytics Technology is the way forward.
What is Contracts Analytics Technology?
In the world of law, AI is generally understood as a predictive coding software that is used for analyzing data during the discovery phase.
However, now we have AI software specifically designed for contract analytics. For example, both corporate and estate lawyers who manage a large number of contracts can benefit immensely from this technology.[4]
These programs have algorithms trained to review and extract certain data from contracts. For example, Lexis Advance AI research assistant, Counsel is an intelligent research assistant that makes research more personal, guided, and conversational.[5]
Another fine example of use of contract analytics tool is, “say an organization has a large database of purchase agreements that include multiple languages. The task at hand is to determine if a certain clause is present in each contract, and if so, whether the wording is uniform or varied. AI software can review, identify, and extract this information in a matter of minutes (or sometimes even seconds)”.[6] Thus, contract analytics is the quickest way to sift through contracts that contain optimal clauses and the ones that need to be amended or renegotiated.
In a popular AI-experiment conducted by LawGeex, 20 experienced US lawyers were pitted against an AI to do routine legal tasks of reviewing and approving everyday contracts. While there was only a difference of 9% in accuracy, the impressive part was that the AI achieved an accuracy of 94% in mere 26 seconds! It took an average of 92 minutes for the lawyers to review the same number of contracts.[7]
The Final Verdict
Increase in clientele will always be accompanied with a spurt of contract volume and complexities. It is without a doubt a difficult task to manage in house as it is extremely resource intensive and time consuming. Therefore, let technology lead the way!
“The LegalEase team comprising of 60 expert attorneys performed contract review of 42,000+ documents for a Fortune 100 Financial Corporation via a premier Contract Lifecycle Management software within 19 days.”
At LegalEase we have our eyes on the future and constantly keep ourselves educated on the nuances of legal-tech, its risks, and rewards. LegalEase Solutions is a legal services provider offering corporate legal departments and law firms innovative support with their contract lifecycle management, compliance, document review, legal intelligence, on-demand legal operations, and legal research and writing. LegalEase works with leading contract management technology that enables control over the contract universe, reduces susceptibility to risks and penalties, optimizes spend, and improves inter-departmental decision making. If you’d like to optimize your legal functions, feel free to reach out to us. Our team of expert attorneys would be happy to help you make your way through the legal-tech jungle. We are available at contact@legaleasesolutions.com.
[1] Q1 THE NIELSEN TOTAL AUDIENCE REPORT, 2019 https://www.rbr.com/wp-content/uploads/Q1-2019-Nielsen-Total-Audience-Report-FINAL.pdf
[2] https://beebom.com/examples-of-artificial-intelligence/
[3] (https://www.epiqglobal.com/en-hk/thinking/blog/contract-analytics-new-artificial-intelligence: accessed September 17, 2019; site inactive on 5 April 2022) https://abovethelaw.com/2019/08/iltacon-2019-smarter-email-ai-contract-review-and-more/?rf=1
[4] (https://www.epiqglobal.com/en-hk/thinking/blog/contract-analytics-new-artificial-intelligence: site inactive on 5 April 2022)
[5] https://abovethelaw.com/2019/09/iltacon-2019-ai-legal-research-bots-threat-manager-tools-and-more/
[6] (https://www.epiqglobal.com/en-hk/thinking/blog/contract-analytics-new-artificial-intelligence: accessed September 17, 2019; site inactive on 5 April 2022)
[7] (https://www.lawgeex.com/resources/aivslawyer/?utm_source=google&utm_medium=cpc&utm_campaign=Global_sch_ai_vs_lawyers&utm_adgroup=56678748950&device=c&placement=&utm_term=%2Bai%20%2Bcontract&gclid=Cj0KCQjw_OzrBRDmARIsAAIdQ_IByRbsrUt9uQVC4oNDwH6j5s-xO55XCqnvxkUs5bBZYYwlUFn01dcaAko9EALw_wcB: accessed September 17, 2019; site inactive on 5 April 2022)
