Efficiently locating information in a company’s written records and contracts is an essential management activity. Correctly populating information into contract management software programs is one of many uses for such information. Without extracting the unstructured data and populating the fields in the programs, key provisions like automatic renewal or termination events can easily be missed.
Traditionally, a service provider performs the task of reviewing a 20 page writing for 20 data fields by creating an excel spreadsheet with the title of the fields to be populated on top, typing in the name and/or ID of the contract, reading the 20 page contract numerous times, and typing in the appropriate information into each column as they find the information in the contract. Performing the task in this manner takes about 20 minutes per contract to extract and record the required information.
The costs associated with performing the task in such a way results in charges on a per piece basis of about $10-$12 per contract, and generates approximately $30 per hour to the service provider. If one needs to process 2,000 contracts, the charge will be about $20,000 to $25,000. Many companies decline to make that investment and consequently do not obtain full utilization of their contract life-cycle management (CLM) software.
Legal Outsourcing 2.0 approaches the task differently. We use cutting edge software that OCRs the writing, and then applies AI and NLP technology, as well as calibrated algorithms, to locate and highlight the relevant information in the contract. All our lawyers have to do is ensure the suggested answers are correct. They then cut and paste the requested information into a table and perhaps read the entire writing once, not ten times. With this technology, we can process seven or eight writings per hour as opposed to three writings per hour as per the traditional approach. We obtain better quality results, and cut the price in half.
The traditional approach maximizes revenue for the vendor. Our approach maximizes satisfaction of the client. Our clients seem to like our approach better.