In a recent international study, an artificial intelligence software created by LawGeex, a Tel Aviv based startup, proved more accurate and quicker at reviewing legal documents than lawyers with vast experience.
In fact, the software analyzed nondisclosure agreements with more speed and accuracy than 20 experienced lawyers.
For administration and monitoring purposes, the study included independent consultants from Bar Ilan University’s Department of Computer Science and Stanford University’s School Law as well as an independent lawyer, Christopher Ray.
The researchers involved in the study compared the functions of the experienced lawyers to the AI software owned and operated by LawGeex’s.
The results indicated that the software was capable of completing the task in considerably less time and approximately 10 percent more accuracy.
According to the company, the study marked the first time its AI technology had been evaluated using such a typical task like analyzing a nondisclosure agreement. Lawyers execute such activities on a daily routine.
During the study, LawGeex’s AI technology and the experienced lawyers were provided with five formerly unseen contracts.
In total, the documents comprised of 153 paragraphs of the technical language used in the legal world, which were drawn from typical nondisclosure agreements.
The lawyers performed the task at 85 percent accuracy on an average basis and consumed almost 92 minutes.
On the other hand, LawGeex’s AI software took just 26 seconds and set an average accuracy rate of 94%.
The worst performing lawyer in the study managed an average accuracy of 67% while the best performing matched the AI software with an average of 94%.
Gillian Hadfield, University of Southern California’s professor of law and economics, was one out of the three academics who participated in the study.
She highlighted several advantages of AI-based technologies including saving money and time used to carry out daily legal activities while making control management faster and more reliable.
Noory Bechor, the co-founder and CEO of LawGeex, said in an interview that the company’s AI software was more useful and distinguishable compared to other existing products.
He justified his remarks by citing that the technology was designed to comprehend the complicated legal language as opposed to just words that are commonly utilized in everyday speech.
To train the computer to comprehend legal contracts, LawGeex’s AI software gives it numerous samples to review.
In addition, it breaks each contract down into smaller legal sections to allow the computer to understand the text in all the distinct parts.
According to a report compiled by McKinsey, a US-based consulting company, AI-based technologies can automate approximately 22% and 35% of a lawyer’s and law clerk’s work respectively.
Thanks to software programs like LegalGeex’s, the process of reviewing legal contracts can now take hours as opposed to months or weeks.
Findings by CB Insights revealed that investment from VC firms in AI-based technology, especially in the legal industry increased by 43 percent in 2017 compared to 2016.
According to Crunchbase, LawGeex, created by IIan Admon and Noory Bechor in 2014, has managed to raise $9.5 million to date in a series A financing round.