Artificial intelligence has overtaken lawyers for the first time in a staple of the legal profession — accurately spotting risks in everyday business contracts.
In a new study, LawGeex has achieved an average 94% accuracy rate at surfacing risks in Non-Disclosure Agreements (NDAs), one of the most common legal agreements used in business. This compares to an average of 85% for experienced lawyers.The study pitted the LawGeex AI solution against 20 US-trained top corporate lawyers with decades of experience, specifically in reviewing NDAs.
Input from top US academics and veteran lawyers
Leading legal academics and veteran US corporate lawyers who collaborated in the study include:
- Professor Erika J.S. Buell, Director of the Program in Law & Entrepreneurship, Duke University School of Law.
- Gillian K. Hadfield, Professor of Law and Economics at the University of Southern California.
- Bruce Mann, former senior partner at top US law firm, Morrison Foerster, who has handled more than 300 IPOs and over 200 mergers & acquisitions.
The study was overseen and administered by independent lawyer Christopher Ray. Additional consulting academics included Yonatan Aumann, Professor in the Department of Computer Science, at Bar Ilan University.
Gillian K. Hadfield, Professor of Law and Economics at the University of Southern California said:
“This experiment may actually understate the gain from AI in the legal profession. The lawyers who reviewed these documents were fully focused on the task: it didn’t sink to the bottom of a to-do list, it didn’t get rushed through while waiting for a plane or with one eye on the clock to get out the door to pick up the kids. The margin of efficiency is likely to be even greater than the results shown here.
“This research shows technology can help solve two problems — both making contract management faster and more reliable, and freeing up resources so legal departments can focus on building the quality of their human legal teams.”
The full methodology and findings is available at http://lawgeex.com/AIvsLawyer
Download the study and discover:
- A full breakdown of the methodology, analysis, and results of the groundbreaking study
- Insights and interviews with lawyers who participated
- Takeaways from leading law professors on the study’s long-term impact
- Practical insights into AI’s value and role in the future of law.
The full study is available here.