This is the fourth of a ten-part series on contract migration and related data extraction, which will help your legal teams gain a better understanding of the information included in all of your contracts. This is the most asked, if not, assumed (as yes) question! And a very pertinent one.
AI Software is a necessary condition for meta-data extraction from your legacy contracts. But it is not at all a sufficient condition. So, what else do you need on top of that?
The answer – two more dimensions are necessary. Legacy contract review by qualified individuals (Lawyers), and astringent process (People/Process). With the control of the AI software, trained lawyers, and a stringent process, perfect data can be extracted. Why put bad data into a large CLM investment?
To answer why AI software is necessary, but not sufficient, consider this:
- Smudgy scans of documents. If the document has handwritten or smudgy information which will not accurately OCR even with the best OCR/ICR engines, what can the AI software do? Nothing! You have to have someone look at the document to correct this information.
- What if there is missing information. The effective date is missing. Or is partial – someone put in 2021, v/s 2022, an obvious mistake, especially at the beginning of the year. Did someone miss out on the month? You need legal review.
- What if there is conflicting information? One part of the document says that the contract is effective as of 10/19/19 for one year. And the termination clause says that this contract will terminate on 5/25/21. Which is true? You need a thorough legal review.
AI software can do most occurred scenarios correctly. But exceptions and interpretations can only be handled by qualified legal personnel.
And what is the third dimension – process – mean? One of the elements of a stringent process is for trained legal personnel to review EVERY attribute after the AI software finishes. This has to be part of the AI software which forces them to do that (so that it is not short-changed). There are other elements of a stringent process.
Reach out to Brightleaf for more and a demo of the process with our AI software.