Co-Pilot at Law: Contract Negotiation on Autopilot - Part 2Luminance's Jaeger Glucina on How Autopilot Assists Legal Professionals
Luminance Autopilot operates as a legally trained AI mediator, autonomously reading, analyzing, and responding to changes in contracts within minutes, thereby eliminating the need for human intervention, said Jaeger Glucina, chief of staff at Luminance.
In Part 1 of this interview with Information Security Media Group, Glucina delved into how LLMs and co-pilots are transforming the legal profession today, solving challenges and assisting legal professionals. In this part, she explained Autopilot's salient features and its immediate applications across diverse legal landscapes.
Edited excerpts follow:
How does your Luminance Autopilot help with contract negotiation?
Autopilot completely automates the contract negotiation process. [The AI can read a contract, remediate areas of risk, and respond to any changes made by the counterparty’s AI]. Negotiations between two opposing parties are presented to a legally trained AI without the need for human involvement, and the whole process only takes a few minutes. So, a key benefit of Autopilot is the time it will save. It's important to remember that the AI works according to the information it's provided with: it analyzes a business's previously agreed contracts to gain an understanding of how the business prefers to negotiate and applies this knowledge to any contract it is asked to review moving forward.
While this is undoubtedly a huge step forward in terms of what AI can do to support the legal profession, it's important to note that Autopilot isn't designed to completely replace lawyers. Its purpose is to handle routine, standardized documents, allowing lawyers to focus on more critical matters. Notably, lawyers still have full control, in the sense that they can determine how aggressively the AI negotiates on certain positions and review a log of all changes made by the AI before they sign on the dotted line - I don't see this changing any time soon.
Apart from contract negotiation, what are the other use cases?
There are plenty of other ways our AI is being used across routine business operations. For example, our AI-powered contract repository provides instant insights into the organization of a company’s document landscape. This means that organizations are able to centralize their data and have full oversight of their contractual obligations without needing to input any data. This is unheard of in the industry to date, and something businesses exhaust a huge amount of human time on.
Luminance's AI is also revolutionizing the way many lawyers - both in-house and those in law firms, consultancies and alternative legal service providers - undertake M&A due diligence reviews. Through a combination of supervised and unsupervised machine learning, Luminance is able to rapidly read and form an understanding of any document set in minutes, meaning it can be used to get a clear picture of risk and opportunity buried in a data room, including uncovering statistical anomalies. With the explosion in corporate data, lawyers today are often tasked with reviewing thousands of documents, with ever-tighter deadlines. Luminance offers the perfect solution to this problem and avoids the risk of "sampling" only a portion of the relevant data. Luminance has been used by teams in 60 countries and in 80 different languages for these reviews since its launch in 2016.
Luminance's ability to understand a large number of legal documents in a matter of seconds is also a game changer for legal departments navigating the ever-changing, highly complex regulatory compliance landscape. For instance, consider the Financial Conduct Authority's transition from London Interbank Offer Rate (LIBOR) to risk-free rates at the start of 2022. Due to the extensive number of contracts that needed to be reviewed to assess LIBOR exposure, AI was a critical tool for financial institutions and legal teams to prevent contractual risk and the potential penalties of non-compliance. Luminance's technology was used to automatically identify key LIBOR-related provisions for lawyers to review, drastically reducing the time and resources spent on finding and remediating LIBOR-related documents. Similarly, legal teams in Europe for General Data Protection Regulations and the resulting Data Subject Access Request reviews, those in the U.S. for the California Consumer Privacy Act and those in Australia for the Unfair Contract Terms reform this year have all reported favorable results of using Luminance. It is rare for one product to be subject-matter, language and jurisdiction-agnostic to the extent that Luminance is, in order to address such a broad range of legal topics around the world.
Looking further into the future, this kind of technology could even be applied beyond businesses. Think about how much legal content we as consumers interact with daily - mortgage agreements, employment contracts, cookies policies and WhatsApp T&Cs, among others. Do most people understand everything they've agreed to and the potential implications? Probably not. It's possible that someday AI could help us to quickly understand and even negotiate these kinds of legal terms.
What are the salient features of Autopilot?
A key benefit of Autopilot is the time it will save - a task that would potentially take a human lawyer hours to complete can be achieved by Autopilot within minutes. That's without mentioning the time it takes for the lawyer to start working on the task! If they're busy with other tasks, a contract could be sitting in their inbox for weeks before it is looked at.
Autopilot is a very natural extension of our co-pilot product, which is already being used by hundreds of organizations around the world. Customers who use our existing technology already have access to Luminance's Traffic Light Analysis, which automatically reviews a contract for potential risk, indicating non-compliant language, and suggests alternative wording. This just goes one step further by making the decision for its users.
I like to compare this jump in our AI's abilities with the journey of a real-life lawyer. Lawyers undergo years of training and then need to get plenty of practical experience in order to form a deep level of domain expertise. This is the same journey that Luminance's AI has taken, having been used, classified and validated through exposure to real-life scenarios by legal professionals at the very highest level for years. Autopilot is now ready to work on its own - or under supervision if you choose, of course.
At Luminance, Glucina oversees operations, leveraging AI for contract drafting, negotiation and reviews. She is responsible for client development and management, overseeing sales to more than 500 customers. Glucina's experience spans insurance litigation, legal technology and business services.