JordanFurlong + contracts   21

Shouldering More Work, In-House Becomes Selective with Tech Adoption | Legaltech News
When pressed for where technology was expected to deliver the biggest advances in efficiency, 64 percent of respondents said contract management— specifically contract creation, management of the renewal process and risk mitigation. Those considerations may also be driving the ways that companies use AI as well.

According to the survey, 44 respondents indicated that AI is having the biggest impact in contract management and review. E-discovery took the second biggest piece of the pie at 27 percent, followed by managing repeatable legal workflow at 22 percent.

“If you’ve got 200,000 contracts, you can’t take make sense of that on your own. You’ve got to use technology to do that,” Cemenska said.

He pointed to contract analysis tools, where an AI identifies key terms in a document or PDFs to extract and index data, as an example. Once those solutions are in place, it’s easier for an organization to proactively mitigate future risk by, say, identifying problematic clauses hidden within existing contracts.
it  robo  contracts  clients 
11 weeks ago by JordanFurlong
Axiom to Go Public, Applying for IPO and Spinning Off Two Businesses | Legaltech News
Axiom spun off its data analytics arm Knowable and legal solutions platform Axiom Managed Solutions last week (February 12) in preparation for the move.

The company currently employs over 2000 people globally, and in 2017 reported revenue of $300 million, according to CEO Elena Donio.

Ashurst recruited Axiom‘s services in 2016 as part of a drive to offer further regulatory advice to the law firm’s banking clients, in what was the legal services provider’s first official law firm partnership.

In 2016, Mishcon de Reya hired Axiom’s London general manager Nick West as its chief strategy officer at the firm.

The application comes amid a raft of alternative legal service business movement in the market and an increasing interest in law firms floating.

Earlier this month Big 4 accountant EY signed a deal to begin using Slaughter and May-backed artificial intelligence company Luminance across its global legal network.

And DWF has joined several law firms moving to offer an alternative business proposition by cementing its aim to float on the London Stock Exchange.
newlaw  competition  flex  contracts 
february 2019 by JordanFurlong
In-house guide to LawTech for Commercial Contracts | Radiant Law
About this guide
This is one of a series of guides created by Radiant Law to help in-house legal teams improve their contracting processes. You can find other guides here. Although these guides are focused on handling commercial contracts, many of these technologies and approaches can be applied to other activities that you do.

LawTech is both helpful and overhyped and finding the right path is hard. We published a LawTech Glossary with definitions for lots of the lingo you will inevitably be exposed to, which admittedly expressed some of our frustration with the hype. This guide is to assist you to find tools that will actually help, and ensure that they are actually used.
contracts  clients  robo  it  innovation 
september 2018 by JordanFurlong
In The Eternal Inferno, Fiends Torment Ronald Coase With The Fate Of His Ideas – The Yorkshire Ranter
This had important consequences. First of all, the claims-management process was itself costly. This is Coase’s basic argument. Second, because the prices of services exchanged between the component firms were often determined after the event, through the claims process, they were no longer informative about the marginal costs involved, but rather about the contract-management process. As a result, costs overall rose substantially although nobody could put their finger on who was coining it. Thirdly, it simply became enormously complex. A contract, after all, is executed between parties. The number of pairwise interactions within an organisation rapidly becomes very large – in fact, it increases by the factorial of the size of the organisation.
april 2018 by JordanFurlong
AI Beats Lawyers in NDA Review Accuracy - LawGeex Study - Prism Legal
hat Machines Beat Lawyers Is Not Surprising. Many lawyers may be surprised that the AI won; I am not. I started comparing human versus machine performance in discovery document review in the early 1990s. Even then, with an earlier generation of natural language processing operating against text generated by OCR,  it was clear then that the machines often performed better. A decade later, the predictive coding discussion in eDiscovery document review began in earnest – and continues. Many studies have found predictive coding is more accurate than lawyers.
Courts Not a Barrier to Adoption Here. Predictive coding uptake has been slowed down by the need for judicial review and acceptance, a process that takes years. In contrast, for NDA reviews, in-house counsel get to decide on their own what approach to use. They don’t have to persuade a court. (I am sure some will say, “well what if something was missed and it leads to litigation”. My answer: so what? Whatever litigation has arisen over NDAs to date is the result of human action – or perhaps failure in action.)
A Move to Evidence-Based Decisions re How Lawyers Practices. The way lawyers practice is based on history and precedent. Rarely do we have evidence to support one practice approach versus another. Though some may find flaws in the study, I applaud it for providing what appears to be well-grounded evidence. The predictive coding acceptance battles teach us that controversy over study design may arise. Good. That’s how science and empirical testing is supposed to work. If you do not think one study is properly conducted, do your own. Or point out the flaws and hope someone else fixes them.
robo  contracts  data  innovation 
march 2018 by JordanFurlong
Axiom Launches Contracts Intelligence Platform for Corporate Transactions
The Contracts Intelligence Platform, used during buy or sell-side due diligence or during post-merger integration, provides two key functions: First, the technology automates contract review, using artificial intelligence to collect and identify relevant clauses. As part of Axiom’s M&A Diligence and Integration solution, experienced legal professionals also provide oversight to ensure data accuracy and interpret contractual language into structured, measurable data fields.

Second, the Contracts Intelligence Platform provides users with a radically transparent view of the contract data, presenting insights through a fully configurable business intelligence dashboard housed on a secure web portal. Visualizations are built around specific use cases that are common risk areas or requirements for a transaction, such as evaluating change of control obligations or identifying uncapped liabilities. Detailed analysis can be shared with key stakeholders to inform an array of critical decisions companies must evaluate throughout the M&A lifecycle. This reduces a significant burden on legal teams in a cost-effective way, streamlining the deal process and allowing them to provide meaningful business value to other functions. After the project is completed, companies can keep continued access to the portal for an ongoing service fee.
contracts  robo  competitor 
february 2018 by JordanFurlong
Axiom Ramps Up Race for Tech Talent | The American Lawyer
On Monday Axion tapped Doug Hebenthal, a tech industry veteran who has worked for Microsoft and Amazon, to serve as its first chief technology officer.
Axiom assigned Hebenthal, who took up his post on Oct. 2, the job of setting up the new Seattle R&D outpost, as well as expanding the company's automation and artificial intelligence capabilities.
The new tech center also will rely on outside providers of specific tech products and services, according to Hebenthal, who most recently served as chief networking engineering officer at Change Healthcare, a software provider, and prior to that served as director of engineering for Amazon’s e-commerce payments platform.
Since it launched more than 15 years ago, Axiom set as a goal shattering the traditional delivery of legal services. It began in 2000 lending lawyers to law departments—or “insourcing” them, a novel proposition at the time.
These days, the company employs 1,200 lawyers who are available for insourcing. One-third of the company’s revenues, however, come from its automated contract drafting and analysis services, Donio said.
The hiring of Hebenthal reflects the company’s expectation and strategy that the automated side of its business model will continue to grow, Donio said.
“This is about breakthrough. We envision a world where we can create a contract without writing it and understand a contract without reading it.” Donio said.
“I would like to see us shake the trees on what we could be doing as an industry,” she said.
competition  innovation  flex  robo  contracts 
october 2017 by JordanFurlong
Daimler’s innovative blockchain bond issue good and bad news for lawyers | Julius Melnitzer - The Lawyer's Daily
Here’s why blockchains are a threat to the profession: they eliminate middlemen because they eliminate the need for counterparties to trust each other. They work on the principle of a distributed ledger, which everyone involved can inspect but no one can change without the agreement of others or a process that is the subject of such an agreement.

In the Daimler transaction, the borrower, the bank and the investors accessed a decentralized portal where documents and contracts are confirmed. Once the agreement was signed, the blockchain generated digital tokens that smart contracts allocated to investors.

Generally, arranging this type of transaction takes from 10 weeks to four months, and requires about 20 pages of documentation. Blockchain technology reduced that window and workload significantly. Santander InnoVentures, Santander Group’s global corporate venture capital fund that focuses on early stage fintech investment, has estimated that blockchains could reduce global banking costs by up to $20 billion by 2022. No wonder Daimler and LBBW are looking to expand their use of the technology, initially to syndicated loans and export financing — undoubtedly with considerably less input from lawyers.

The fact is that lawyers are middlemen too, especially where their contribution is akin to that of a contract manager. If there’s any doubt that lawyers are in blockchain’s sights, consider this response from Vitalik Buterin, co-founder of Ethereum Foundation, a leader in cryptocurrency and blockchain technology, when asked who might suffer from the phenomenon: “I suspect and hope the casualties will be lawyers earning half a million dollars a year more than anyone else,” he said.

Indeed, it’s the “smart contract” aspect of blockchain technology that may be of the most direct interest to lawyers. And, ironically, as technology continues to intrude on their traditional functions, it may be their saviour.
blockchain  contracts 
september 2017 by JordanFurlong
Clause, Clio + US Law Firm Cooley Launch Smart Contract Consortium – Artificial Lawyer
US-based legal tech pioneer, Clause, is co-launching the world’s first smart contract consortium, alongside tech company Clio, blockchain platform Hyperledger and leading law firm, Cooley, among others.

The goal of the ground-breaking consortium, to be named Accord, is to help bring together key players in the world of smart contract technology, blockchain and legal tech companies in general so that ideas and formats can be shared across the industry.

The move is similar to the consortia banks, Big Four accountants, major corporates and blockchain companies have developed together to help share knowledge and develop common standards that will enable the spread of the technology.

While New York-based Clause has pioneered the use of smart contracts, whether on-chain or off, without broader acceptance then the technology may have limited impact. A key strategy for broadening use, knowledge and familiarity is thus to bring together multiple parties, all of whom can make use of smart contracts or link to them in some way.

A joint statement by the group said: ‘With support from leading law firms and other organisations, including the Linux Foundation’s Hyperledger, the International Association for Commercial and Contract Management ( IACCM ) and Clio, the Accord Project has launched to develop open source technology and standards for computational contracting.’

Peter Hunn, the British co-founder of Clause told Artificial Lawyer: ‘The end goal is to establish workable standards – both technical (hence the open source element) and legal – for smart legal contracts. There needs to be action on this level to build this new paradigm. Traditional contracting practices have been built up over centuries so Accord is the catalyst for this new wave. Our call to action is to get law firms, lawyers, and legaltech companies involved. ‘
contracts  collaboration  it  robo  innovation 
july 2017 by JordanFurlong
Lexpert ® | Machine Readable
While basic forms of contract automation have been present for a long time in Canadian corporate law — since at least the 1980s — the past two years or so have seen much more sophisticated systems emerge, such as Contract Express (produced by Lexpert publisher Thomson Reuters), Kira Systems, Korbitec’s ACL and RAVN, to name a few. They’re being increasingly adopted by Canadian corporate law firms.

At Gowling WLG, for one example, the firm has just begun experimenting with a bulk data extraction system that can comb through thousands of contracts in a portfolio and extract specific information or clauses to spot, say, a particular legal risk hidden amongst them. “We’ve used it on a million-dollar file,” says Tamminga. A client had presented the firm with thousands of contract documents, asking, “What do I do with these?”

Tamminga doesn’t mince words when it comes to the kind of tedium these systems will manage. “If I want to buy a mall and it has 250 leases in it, I want to know all about those leases. If they are machine-readable, should I do that automatically? Or do I have [an associate] read all 250 of those leases?”

So Gowlings told that big, anxious client, with its digital heap of contracts, “Well, we can’t have anybody read them, because they’ll die! Here: we’ll throw this software at it and we will see what comes of it. And we got useful stuff!”
contracts  robo  firms  innovation  process 
may 2017 by JordanFurlong
With Contract Automation, Ambition Doesn't Always Align With Reality | Legaltech News
onsider the example of an online subscription service—if you stop paying for your Netflix account, Netflix automatically cancels your access to its platform without having any individual review the issue and manually disable your account. That revocation, Whetsell noted, is a kind of self-executing contract, albeit one with much less appeal and fanfare.
However, since its inception in the 1990s, the technology that could support the smart contract has grown up. Blockchain technology, which took off as the underpinning technology of Bitcoin, has introduced a new layer of interest in smart contracts. Blockchain uses a shared or distributed "ledger" to keep track of each transaction, something that many contract technologists, like Whetsell, believe can be used to validate the terms and triggers of a smart contract.
Indus Khaitan, CMO at Sirion Labs, defined smart contracts along the same lines as Szabo. "The way I see it is nothing but an executable piece of code that can automatically use what can be promised and what is supposed to be delivered." That code, Khaitan added, can really be in any programming language or format.
contracts  blockchain  innovation 
march 2017 by JordanFurlong
Inside the 'Robot Review': 3 Trends Defining the Artificial Intelligence Contract Market | Legaltech News
he efficiency and automation AI contract solutions bring is changing the way legal departments function and grow. And it's not just changing corporate legal's waning reliance on outside counsel —who once manually managed all contract review for their corporate clients—but also the increasing work and responsibilities they have taken on in-house.
As proof of this trend, LaxGeex's Goldberg points to the growing "number of people who call themselves legal operations last year compared to two years ago, and compared five years ago. In the past, the term 'legal operations' hardly existed. Today, many legal teams have a legal operations expert; they may even have a legal automation expert or legal technology officer."
Still, how much AI contracts can change the makeup of a legal department may be limited. Wojcik noted that as AI contract companies focus on developing simple solutions that legal users "who have no technical, no coding, no data scientist, no business intelligence background" can use, there's little need for IT specialists and data scientists.
robolawyer  roboclients  contracts 
march 2017 by JordanFurlong
LawGeex Raises $7M, Riding Surge of Corporate Interest in AI Contracting | Corporate Counsel
For many corporate legal departments, AI contract review is becoming more of a necessity and less of an operational challenge.
robolawyer  contracts  startups 
march 2017 by JordanFurlong
Inside the “Dynamic Contract”: Clause’s Step Toward Computable Contracts | Legaltech News
What It Can Do
Embedded internet of things (IoT) data streams: Clause’s signature feature is its ability to reflect real-time changes in data streams drawn from IoT devices, meaning that things like temperature tracking, resource flow, and time stamps can be reflected in the body of the contract without a manual language change. “You can essentially set it and forget it. You don’t have to do any manual reconciliation,” said Clause co-founder Peter Hunn.
Automatically generate invoicing: Hunn and fellow Clause co-founder Houman Shadab explained that with integrated data streams, the data-driven contract can automatically generate invoicing consistent with changes in conditions reflected in IoT data. This could eliminate or reduce the need to have individuals monitor contract compliance and manually manage invoicing.
Maintain a record of changes to the contract: Though Clause’s contracts update themselves, keeping a full record of any changes to the contract can be useful. “If there is a dispute about what the terms were, or if there is a breach, parties would not have a problem resolving that problem,” explained Shadab of the contract’s recordkeeping capabilities.
contracts  it  innovation 
january 2017 by JordanFurlong
Smart Contracts 101 for the Non-Techie Lawyer | Legaltech News
Smart contracts are contracts that are created using programming language, or a set of computer instructions that automatically execute. One way to think of these contracts is as a “living” agreement.
Whereas a third party intermediary, like an attorney or bank, would be entrusted to release agreed upon funds to a specific party once certain terms of a contract are met, such as the receiving of a title deed, a smart contract could automatically perform such action without a need for any intermediary. 
So long as the funds and title deed can be transferred electronically, each can be automatically released to their respective parties, once triggered by the contract’s terms.
These contracts are already being deployed. Lewis R. Cohen, partner at Hogan Lovells explained that his clients are already using contracts that “make use of computer models in order to automate payments and cash flows.”
And while smart contracts precede blockchains—a method for structuring data that functions as a sort of digital ledger – the two technologies are often associated with one another. In this sense, blockchains can be looked at as a “hospitable platform for smart contracts,” said Hogan Lovells partner Ira Schaefer. This is due to blockchains’ ability to create databases, whereby computers in various locations can share the same, “immutable” ledger or file, in this case a self-executing contract.
Theodore J. Mlynar, also a partner at Hogan Lovells, noted that among the advantages of smart contracts its “ability to streamline the contracting processes,” which provides “the parties more confidence that they are going to actually achieve the results they expect, and fully carry out the parties’ intentions.”
blockchain  contracts  robolawyer  it 
january 2017 by JordanFurlong
4 Ways Technology Is Changing Contracts | Legaltech News
4. Compliance Management
Contracts, for the time being, are written almost exclusively in natural language, but startups are increasingly finding ways to parse data from contracts to make compliance management easier. Startups like Silicon Valley-based SirionLabs bring their tech to the other side of the equation—whether a contract's promises are actually being met—to help buyers track compliance before due diligence.
SirionLabs chief marketing officer Indus Khaitan explained that SirionLabs' platform can extract obligations from a contract using natural language processing; calculate compliance with automated data stream management tools; and display a schedule of events around a contract in a dashboard.
"Data is still post-facto," Khaitan noted, adding that while data-driven contracts may be the way of the future, they're still four to five years away from regular use.
contracts  compliance  robolawyer  roboclients 
january 2017 by JordanFurlong
The future: where borrowing is the norm and ownership is luxury | Technology | The Guardian
This is what makes blockchain such a potentially powerful accelerant of the sharing economy: it gives property the ability to know who its owner is. A
blockchain  contracts 
november 2016 by JordanFurlong
Gaining a Strategic Advantage Through Analytics for Contracts | Legaltech News
Enterprise business is moving towards a world where acquiring, processing and sending information is revolutionized, making the old habits of storing contracts in a file cabinet and never looking at them again obsolete. We now live in an era of instant and impactful analytics, yet some businesses still operate the old-fashioned way, with sluggish manual contracting processes and static reports that don't tell the whole story or provide actionable intelligence.
In an effort to overcome the challenge of "information overload," the market has shifted its focus from "more data" to "the right data." The need for actionable data has driven analytics initiatives that distinguish the interesting from the valuable. There is no longer a desire to answer every question—just the questions that matter.
Finally, as the market demand for high-powered and intelligent analytic systems has increased, the ability to provide greater levels of visibility, personalization, usability, interaction and convenience became possible through cloud platforms. These best-in-class platforms have brought all data, all processes, and all users to one universally accessible place, and enabled analytics solutions to provide the instant, accurate, and actionable data consumers demand.
contracts  analytics  data 
september 2016 by JordanFurlong
Artificial Intelligence Has Found a Home in Contract Management | Legaltech News
Larry Bridgesmith, professor at Vanderbilt University Law School, sees the beginnings of AI adoption in contract management as a window into future opportunities to improve this work.
"I'm beginning to be very encouraged by its potential state. What I'm seeing is the advancement of technology to be more systematized as opposed to a more ad hoc activity," Bridgesmith says.
Although Bridgesmith thinks that predictive algorithms and automation are still somewhat in their infancy within the legal community, AI could lead attorneys to much faster, more accurate contract management.
robolawyer  contracts 
august 2016 by JordanFurlong
Perspective: In Legal Sphere, Data Isn’t Big, It’s Narrow and Knowable | Big Law Business
Stage Three means mining the data that’s sleeping peacefully in our contracts to mitigate our biggest risks sooner and more intelligently.

It means negotiating smarter contracts going forward, because we know what our aggregate risks and surpluses are across the existing contractual population. It means knowing how contract provisions we’ve negotiated in the past have correlated to actual outcomes, like long-term margin defaults or renewals. It means stripping months out of the contracting cycle, resulting in greater revenue realization and faster revenue recognition.

It means smarter mergers, where we’ve identified upsell and cross-sell opportunities before the deal is consummated, or the price set. It means applying accurate risk scores to high volume contracts (the commercial equivalent of the consumer FICA score) to adjust acceptable risk levels according to the margin potential of each deal.

That’s the promise of Stage Three. It’s a Legal game changer.
contracts  data  analytics 
june 2016 by JordanFurlong
9 Myths Surrounding Blockchain Smart Contracts - CoinDesk
1. Smart contracts are the same as a contractual agreement

No. If we stick to Nick Szabo’s original idea, smart contracts help make the breach of an agreement expensive because they control a real-world valuable property via "digital means".

So, a smart contract can enforce a functional implementation of a particular requirement, and can show proof that certain conditions were met or not met.

These can be fairly strict implementations, eg if a car payment is not made on-time, the car gets digital locked until the payment is received.
blockchain  contracts 
march 2016 by JordanFurlong

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