How are the banking and legal sectors embracing document automation and artificial intelligence software?
Like it or not, we are moving into an era of more fluid automation in both business and home life, with technology like Amazon’s Echo “Alexa” already becoming part of daily routines. As Artificial Intelligence (AI) continues to shape and accelerate the way we handle information and process data, this advancement is also leading to an increase in business efficiency.
According to a recent Accenture study, artificial intelligence has the potential to drive rates of return by US $ 14 trillion in gross value added (GVA) by 2035. In statistics published in the same report, the financial services industry by alone it can capitalize on artificial intelligence technologies. to “relieve workers of routine and repetitive tasks such as generic customer inquiries and mortgage reviews,” benefiting from an additional $ 1.2 trillion in GVA by 2035.
When it was initially invented, there was a fear that artificial intelligence could take full control and dominate the production of content like George Orwell’s novel typewriters in 1984. However, this technology is proving to be a game changer, with a rebound in the adoption of artificial intelligence. proving that all the initial fears around have been effectively overcome.
Technological progression is nothing new and nothing to fear: Since the industrial revolution of the late 18th century, the world has seen factory jobs replaced by robotics, typewriters replaced by PCs, and many more examples of technological advancements. It has often been assumed that the roles played by humans are somewhat safe, secure, and irreplaceable for tasks that rely on data, intellect, and language, such as creating contracts and other legal documentation. This is still true to some extent, but many barriers around logic are being overcome through smarter use of document automation.
Advanced productivity tools in the artificial intelligence landscape within the legal world have led to increased optimism and positivity, as technology now has the power to analyze documents and sift through them in search of relevant information to perform basic human tasks. This artificial intelligence technique is known as natural language processing and is used to scan, extract information, and then accurately predict only information that is only relevant to certain legal cases or claims.
This positivity around data-rich businesses that power artificial intelligence is supported by the legal giant, Baker McKenzie, who states that: “Despite the exaggerated advice above, several commentators believe that the renewed interest in artificial intelligence is Justified. Continuous and Rapid Advances in Computing Power. ” as well as drastic reductions in the cost of computing have led to an explosion in the amount and availability of data, all of which becomes material for optimizing AI algorithms. “
Reliance on AI-powered technology has continued to develop over the past decade, with several multinational banks and law firms adopting this technology. Some of the world’s most innovative companies in these sectors have already implemented automated contract analysis and document production tools. Now you can routinely extract data and create documents quickly and in an error-free format, helping you achieve compliance and minimize risk.
Dana Remus, a professor at the University of North Carolina School of Law, and Frank Levy, a labor economist at the Massachusetts Institute of Technology, studied the top automation opportunities available to attorneys at large law firms. Their paper concluded that immediate implementation of all the new legal technology would result in an estimate that the technology could free up attorney hours by 13%.
Their research also suggested that basic document review has already been outsourced or automated at large law firms, and only 4% of lawyers’ time is now commonly spent on this task.
There are a number of software companies that provide pioneering technology to enable the integration of machine learning and automated document production and analysis; They include: Kira, Cognitiv +, eBrevia, Luminance, and Leverton.
One of the top ten law firms in the world recently released a groundbreaking example of the joint use of Kira and document automation for a matter involving a client facing thousands of dispute-related claims. Kira automatically pulled information from an in-house developed case management system, sent key information to document automation software, which then generated the documents the client needed. The law firm’s innovation team found that the combination of technologies created an agile and comprehensive solution by harmonizing an AI and document automation approach.
Another successful example of similar automation technology being leveraged includes MarginMatrix, a joint venture between Allen & Overy and Deloitte, which automatically drafts legal documents to help banks comply with new financial regulations. The tool reportedly reduces the time required to manually manage 10,000 contracts (on average for any major bank) from more than 15 years in attorney hours to just 12 weeks.
This automation and machine learning approach was also implemented at JPMorgan Chase & Co. to analyze financial deals. The COIN Contract Intelligence program performs the repetitive task of interpreting commercial loan agreements that, until the project went online in June, consumed 360,000 hours of work a year by lawyers and loan officers. The software reviews documents in seconds, is less error prone, and never requests annual leave.
Commercial banks and law firms are under more pressure than ever to “produce” complex contracts, loan agreements, and documents, increasing the risk of incorrect information and data errors. Through the use of artificial intelligence and the automatic generation of contracts and agreements, the difficulties of creating legal documentation are reduced and the production rate increases dramatically.
The world also constantly demands delivery models that are cheaper, faster and better. Recent developments give us a lot to be positive about in the coming years for this to happen and we must realize that full automation will not happen overnight. Combining existing practices in document automation with artificial intelligence will continue to reap the rewards in terms of efficiency. Coexistence is the best way forward and AI is not here to steal your work, well, at least not for a while …