Legal AI Chatbot Assistants | Meet PLAI Assistant
Published:
Mar 19, 2024
As you are well aware, contracts are the backbone of business operations, providing the framework to define and regulate the rights and obligations of all business processes and stakeholders. However, managing these contracts, reviewing them and navigating through them can pose significant challenges. This is where dedicated legal AI comes in to help you. Let's find out how.
Table of Contents
Long-form Legal Contracts
Common Challenges of Long-form Contracts
What Are AI Chat Bots?
Pocketlaw AI-powered Legal PLAI Assistant
Benefits of Integrating AI Into Your Legal Workflows
Legal AI Chatbot Assistant Final Thoughts
Get Started with Legal AI Today
Long-form Legal Contracts
Long-form legal contracts are certainly useful as they provide you with that legal framework that ensures predictability, stability, and trust among you, your stakeholders and all counterparties involved - which we all know we need to have.
Contracts are often long and complex, so they can clearly outline expectations and remedies for breaches, mitigate risks, and resolve disputes efficiently all in one. Furthermore their enforceability under the law makes them indispensable tools for risk management, planning, and executing various commercial operations - all-in-all helping to - which is fantastic.
Long-form Contracts Problems
However, the problem comes with long contracts, which, though at first they seem easy and robust, can add many challenges.
But first, what are some of the issues that we really need legal AI to help us with?
Common Challenges of Long-form Contracts
Long contracts bring with them many complexities that, at first, seem manageable. However, these can quickly get hard to understand and unwieldy, such as:
Complexity and Length
Long contracts can be incredibly complex, containing numerous clauses, stipulations, and legal jargon that can even make other sections of the contract null in void or supersede them - especially when these sections are hidden in the small print.
This complexity can make it very difficult to fully understand all the obligations, rights, and liabilities, leading to potentially very costly oversights down the line.
Time-Consuming Review Processes
Due to the length of long-form contracts, these often require significant time to review and time to understand each provision properly - which can also tend to include many specialists who understand specific nuances of certain parts of the contract that other legal specialists may not know entirely due to their specialism.
This time-consuming review process can be particularly challenging in fast-paced business environments or when dealing with multiple or a large volume of contracts simultaneously for the same project.
Ambiguities and Unclear Language
Contracts often contain ambiguous terms or vague language that can lead to differing interpretations depending on who is reading it.
This ambiguity can easily result in disputes or litigation, as parties may have different understandings of their responsibilities due to these.
Compliance Issues
Long contracts often involve multiple regulatory requirements, especially in specific industries like finance, healthcare, or international trade to name but a few.
Consequently, ensuring compliance with all relevant laws and regulations can be a daunting task and can often - for more complex documents - be a dedicated role alone.
Risk Management
“According to Gartner, Only 13% feel confident that they can manage cross-functional risks without creating drag on the business.” Identifying and managing risks in long contracts is always challenging, especially when combined with ambiguous or unclear language, multiple clauses, and international agreements.
As a result, Lawyers and business professionals must carefully analyse contract terms to mitigate potential legal and financial risks, which, as we all know, is only sometimes easy to do - even with lots of experience under your belt.
Negotiation Difficulties
The negotiation of long contracts can be complex and time-consuming.
For instance, it can take much work to reach a consensus on specific terms, especially when they involve critical, complex or sensitive issues.
Updating and Amendment Challenges
Long contracts may also need to be updated - or amended - over time to reflect changes in business relationships, laws, or market conditions.
Managing these changes can often be very cumbersome and may require renegotiation of terms for example.
Interdisciplinary Knowledge
Contracts often touch on various areas, such as finance, technology, and law, all within the same contract.
Consequently, legal professionals must have - or be capable of developing - a broad understanding of these areas to negotiate and manage long-form contracts effectively.
Cross-Jurisdictional Issues
For businesses operating in multiple legal jurisdictions, long contracts may need to comply with laws in different countries or regions.
Consequently, navigating these cross-jurisdictional legal requirements can be complex and, as we all know, sometimes a complete nightmare as it requires expertise in international law, which is only occasionally the easiest to find.
What Are AI Chat Bots?
So, one way to speed up identifying and addressing these challenges comes with AI, or Artificial Intelligence. But what is AI in this regard?
AI chatbots are, in essence, software applications designed to simulate conversation with human users - especially over the Internet; but they can also be run on your local machine as well.
They leverage Artificial Intelligence - or AI - technologies, including what is known as Natural Language Processing (NLP), with Machine Learning - or ML - to understand, interpret, and respond to human language in a way that mimics human-like interactions.
Different Levels of AI
The sophistication of these AIs can vary significantly, from simple rule-based systems that respond to specific commands (or keywords) to more advanced systems like GPT (Generative Pre-trained Transformer) models, which can generate more nuanced and contextually relevant responses based on their learning databases and feedback.
AI Suitable Applications
Consequently, AI chatbots are used in a wide range of applications, including customer service, information retrieval, therapy, entertainment, and education, providing users with instant and on-demand responses.
However, when it comes to legal issues, specially trained legal AI systems can handle long-form contract challenges with ease. This is due to their ability to utilise their database of information when cross-referencing terms in the contract.
Furthermore, if this was in the small print, for instance, it could have been missed easily. Consequently, the AI could quickly summarise that this was a requirement when summarising hte document for you; that could have been deep within the contract itself.
Pocketlaw AI-powered Legal PLAI Assistant
Step into the future with Pocketlaw's PLAI Assistant, the latest development in AI legal technology!
Navigate through long, intricate contracts effortlessly as we take on the burden of complexities and make your contract journey smoother than ever.
For instance, let's say you've just received a 50 page Master Service Agreement from a big tech provider, which you need to review for your tech procurement teams.
PLAI can help you to:
Provide a summary of the contract
Highlight key risks, e.g. liability, indemnity
Tell you essential deliverables and milestones under the contract
If you don't like the indemnity clause, you can ask it to write you a more favourable one
If you need to speak to your colleagues in the Spanish legal team, you can have it translated for them
Collate the critical clauses for you to copy and paste into an email for your CTO to review and approve the contract
PLAI can help with:
Contract Summarisation and Specific Terms Extraction
PLAI can quickly summarise documents and extract specific terms from them which especially helps with understanding some of the more complex and tricker clauses, such as :
Acceptance Clauses
Arbitration Clauses
Assignment Clauses
Breach of Contract Clauses
Capacity Clauses
Confidentiality Agreement Requirements
Consideration Clauses
Entire Agreement Clauses
Force Majeure Clauses
Governing Law Clauses
Indemnification
Warranties
Liability clauses
This helps you quickly identify essential details without needing to read the entire document.
Expiry Date and Notice Period Identification
Our legal assistant PLAI can not only identify the expiry date of an agreement but also provide you with additional details like the required notice periods at scale as well - showcasing its ability to understand and interpret contract clauses beyond simple term extraction.
Furthermore, it can also quickly provide you with a summary - or explanation - of key terms when you need to explain this to your CEO/CTO when they need to sign-off a contract.
Section and Clause Location
It can also help you identify - and direct you - to specific sections or clauses within a contract, such as where limitation on liability is discussed, for example.
This feature is handy for those legal professionals who need to review or modify certain specific terms very quickly.
Liability and Risk Analysis
This analysis feature further helps you to find financial caps on liability, which are crucial for assessing and negotiating the risk associated with a contract that you may not have initially thought of or seen.
Translation and Multilingual Support
With PLAI, you can also easily understand and respond to queries in different languages - due to its robust multilingual support.
This feature is vital for your multinational teams dealing with contracts in various languages. It allows you to take a contract written in Turkish, for example, and have it immediately translated into English for you.
You can then amend it and have the AI translate it back into Turkish for you to send to your customer, for instance.
Contract Comparison and Risk Assessment
It can compare contracts and assess risks, providing insights into financial risks, obligations, and conditions specified in the agreement automatically for you.
Drafting Assistance
Furthermore, PLAI is more than just an AI that can read and assess your contracts. It can also draft clauses - or even guide on legal matters - such as advising on market standard liability caps when negotiating with larger companies.
This ability to draft and provide you with drafting assistance also positions the AI as not just an assistant for document analysis but also as a tool for generating legal content and advice simultaneously as well.
Customisation and Feedback Mechanism
We know that tailored outcomes are essential for different individuals and companies with varying priorities and other business goals. What's crucial for your organization may hold a different weight for another, and vice versa.
That's why we've incorporated a feature allowing you to feedback to fine-tune PLAI for your contracts.
For instance, if you approve of a response and wish for the AI to replicate similar actions in future contracts, simply hit the thumbs-up button. If you disagree with the output, the thumbs-down option is there for you. Over time, you'll witness PLAI refining its responses to align better with your company's needs.
This adaptive learning feature is an integral part of PLAI's evolution based on your interactions.
Practical Legal Assistance
Consequently, it would help if you thought of PLAI more as a highly efficient Paralegal who can assist you with various legal tasks all based on your own contracts - such as:
Drafting summaries for executive approval
Identifying contract milestones
Simplifying legal jargon for your business teams - helping them to understand complex legal concepts and terminology
As you can see, with PLAI comes a comprehensive suite of AI-powered features designed to:
Provide multilingual support for global teams
To name but a few of its core features
These features demonstrate the AI's potential to significantly improve your legal workflows by automating time-consuming tasks, providing insightful analyses, and supporting your team's decision-making processes.
Benefits of Integrating AI Into Your Legal Workflow
AI for legal workflows brings with it many benefits. This can, for instance, function as your digital Paralegal, offering you several benefits that can significantly enhance your efficiency, accuracy, and overall delivery of your legal services.
These can include:
Efficiency and Productivity
Empower your legal team with efficiency and productivity through our AI-powered solutions. By automating tedious tasks like contract review, clause drafting and business risk summaries, PLAI can help with many legal tasks by saving you up to 90% of your administrative time.
This should free up some valuable time for your legal team, providing them with more time and brain power for them to delve into the intricacies of complex and strategic legal work.
Experience faster turnaround times for contracts and expedited negotiation as your team operates with agility and precision, thanks to Pocketlaw’s innovative AI-powered technology.
Data Analysis and Insights
AI algorithms are very capable of processing and analysing vast amounts of legal data and documents in a fraction of the time it would take a human, which in turn saves you a lot of time on reviewing contracts.
As a result, this can provide your legal teams with valuable insights, help identify trends, and assist in making more informed decisions - which not only gets you to market faster but also allows you to adapt much quicker at the same time.
Accuracy and Risk Reduction
AI tools are also especially good at identifying a large amount of risks. They can quickly help your teams minimise common human errors in the document review and other legal processes.
This accuracy checking ability ensures that documents are thoroughly and consistently reviewed all the time while reducing the risk of you overlooking critical information - thereby mitigating potential legal risks from occurring as a result.
Cost Reduction
By automating routine tasks and improving the efficiency of your legal processes, AI can help reduce operational costs.
This reduction in your operational costs can make your legal services more accessible and affordable to a broader range of clients as a result, along with improving the profitability of your business department and organisation as a whole.
Legal’s AI Chatbot Assistant Final Thoughts
Navigating the complexities of long-form contracts just got a whole lot easier, thanks to the integration of Artificial Intelligence and Machine Learning into your legal agreements, thanks to PLAI.
With AI stepping in as your digital Paralegal, the future of legal operations is here, transforming not only the efficiency and accuracy of your business processes but also enhancing the capabilities of your legal teams in remarkable ways.
So let this integration reshape how you deliver services to your clients - making high-quality legal support more accessible and affordable than ever.
Get Started with Legal AI Today
The journey to transforming your legal workflows with AI begins with a single step. Contact us to book a free demo to explore how PLAI Assistant can be seamlessly integrated into your legal team, and how you can improve your processes while reducing your costs today.
Disclaimer:
Please note: Pocketlaw is not a substitute for an attorney or law firm. So, should you have any legal questions on the content of this page, please get in touch with a qualified legal professional.
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