Technology continues to cut into legal budgets, increasing the need for law firms to get ‘with it’ and increase efficiencies. Take JPMorgan, who have adopted new “COIN” software (that means ‘Contract Intelligence’), which reviews their loan agreements and cuts their legal expediture.
COIN will do in seconds the work once requiring 360,000 hours each year by both lawyers and loan officers, according to a Bloomberg report.
JPMorgan says the cost-cutting software has helped reduce loan-servicing mistakes that could occur through human error, particularly when up to 12,000 new contracts a year are required.
“JPMorgan is scouring for more ways to deploy the technology,” the story says, “which learns by ingesting data to identify patterns and relationships. The bank plans to use it for other types of complex legal filings like credit-default swaps and custody agreements. Someday, the firm may use it to help interpret regulations and analyze corporate communications.”
ABA Journal report that at least one law firm, DLA Piper, is using artificial intelligence software for due-diligence document review in mergers and acquisitions. The software searches text in contracts and then creates a summary and an analysis.
Reed Smith is another law firm that is working on cost-cutting, artificial intelligence software by RAVN Systems, CNBC reports. Reed Smith used the software to review hundreds of pages of documents to identify and pull out certain items in contracts. RAVN made some mistakes, but it improved when lawyers added information to their queries. The platform also picked up some mistakes missed on a first review by lawyers.
Another company called LawGeex uses artificial intelligence to review contracts and spot missing or problematic clauses, PCWorld reported last April.