Typically, training AI algorithms requires large data sets for real-world applicability, and as a result, utilitarian solutions for legal and contractual negotiations has remained a challenging endeavor in the past. Addressing these shortcomings, New York-based LexCheck’s platform has effectively transformed contract negotiation by providing attorney-level functionalities to its clients through its AI-based technology stack. “Our platform automates the entire negotiation process, offers accurate markups and redlining features, and ensures consistency by following the legal playbook for contract negotiation for each specific organization,” says Gary Sangha, the CEO of LexCheck. Essentially, employing LexCheck’s platform could be compared to retaining an attorney of a client’s legal team that exclusively negotiates agreements for their company, servicing their needs 24/7.
Teaming up with leading AI specialists from academia, LexCheck has developed an all-encompassing solution with a judicious blend of its proprietary technology and open-source AI solutions. As every organization’s legal approach is different, the platform is adaptable and can be seamlessly customized as per the client’s legal requirements. Although the platform is pre-equipped with the best practices for common contract types, LexCheck’s specialist team can tailor the platform according to the organization’s legal practices using as few as 24 examples of the organization’s previously negotiated agreements. Users of the system can email their agreements directly to LexCheck’s secure cloud service or even integrate directly with their contract lifecycle management systems. These documents are returned to the user, complete with automated redlining, legal guidance, and other suggestions in just a few minutes.
A lawyer and a serial entrepreneur by trade, LexCheck’s CEO witnessed firsthand the complexity, heavy workload and time constraints faced by corporate legal teams and was inspired to develop a solution to address these pain points. Although the initial approach was to develop a proofreading solution, the CEO’s entrepreneurial spirit came to the fore, creating an AI-based platform that could automatically handle comprehensive contract negotiations for its clients.
LexCheck’s collaboration with a Fortune 500 company stands as a testimony to its ability in providing highly reliable contract negotiation solution. With the platform in place, LexCheck was able to nearly completely eliminate human review time for common business agreements, resulting in reduced total times to execution of reviewing processes by nearly 30 percent.
Attributing such successes to its culture of listening to its clients, Sangha says that the company will continue to leverage its experiences and improve the platform’s capabilities for the future. It has also recently upgraded the platform to recognize a previously negotiated contract and support successive rounds of negotiation to identify fallback positions and other opportunities within the agreement, thereby ensuring comprehensive contract negotiation assistance to its clients.