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. This is the process we use:
- We spend significant time breaking down in detail what information you want captured and how you want the information returned to you;
- You send us the contracts or data by FTP or by uploading them into our cloud solution directly;
- The documents are OCRed and algorithms are applied to them;
- Our lawyer/reviewers take a final call on the algorithm-suggested responses for the fields you want populated.
American businesses routinely exchange relatively standardized contracts. A company seeking funds requires that the lender reviewing the request sign a non-disclosure agreement. Someone needs to review the NDA and determine if signing it and returning it is consistent with company best practices. The traditional legal best practices would be to run each legal document by the legal department. As a practical matter, doing so would delay things and the company would grind to a halt. The often-employed, real world, solution is for a non-lawyer to eyeball it, make suggestions and turn it around without any legal analysis, hoping nothing is missed.
Delay is not an appropriate business response.
Hope is not a sound legal strategy.
Legal Outsourcing 2.0 uses AI to solve the problem created by the need to review routine contracts written on another party’s paper in a timely manner, competently and inexpensively. Our US licensed lawyer in India, together with our client’s lawyer, creates a playbook of best practices and how to respond to various issues in standardized agreements. When the contract is received, the company uploads the contract which is OCRed. Algorithms are applied to identify the thorny issues, best practices are applied by the reviewing attorney using the playbook and a redlined version of the contract is returned to the US company.
The solution is both a timely and sound legal strategy.
Legal Outsourcing 2.0 approaches problems differently. We approach problems seeking to maximize value to our clients by using AI-enabled solutions, not maximize revenue to Legal Outsourcing 2.0. Our clients seem to like our approach.