Services
Legal generative AI
Problem statement
The inefficient and tedious contract extraction and review process
Our role
Developed a Gen AI-enabled solution to systemise contract reviews
The problem statement The inefficient and tedious contract extraction and review process
Organisations face the overwhelming task of sifting through voluminous contracts to extract and analyse critical contract information to meet regulatory and commercial requirements. This involves adhering to specific legal guidelines, like those affecting numerous financial institutions dealing with contract volumes ranging from 200 to over 2,000 contracts. This labour-intensive process is not only time-consuming but also prone to errors, putting companies at risk of non-compliance.
The conventional approach of manually reviewing numerous documents meticulously is increasingly impractical and leads to delays. There's a clear demand for a smarter, faster way to handle contract reviews and ensure everything is in check.
A smarter solution with Generative AI
PwC NewLaw addressed the inefficiencies in contract reviewing by developing a legal generative AI-enabled solution that automates the extraction of key commercial information and evaluates contract clauses against 96 regulatory guidelines.
To ensure the solution's robustness, the NewLaw team collaborated with PwC Singapore’s Third-Party Risk professionals, who provided technical regulatory requirements and risk management insights. In tandem, the contract review professionals were engaged to help develop and finetune AI prompts, ensuring precise interpretation of contract clauses to bolster the solution’s reliability. This collaborative effort, involving human-in-the-loop validation at each stage and continuous refinement, results in a solution that is effective, reliable, and scalable.
Efficiency in contract analysis From lengthy processes to streamlined precision
Our Legal Generative AI solution now streamlines the review processes for high-volume portfolios by breaking down the workflow into three scalable components:
- Extraction of key relevant commercial terms
- Assessment of contracts' regulatory scope and clause-specific requirements
- Extraction and evaluation of pre-determined clauses (e.g., termination, confidentiality, subcontracting) to verify regulatory adherence.
This strategic re-engineering yielded significant results:
- Reduced per-contract review time to approximately six hours
- Expanded the scalability of contract reviews, from sampling to the client's entire contract universe, ensuring comprehensive compliance
- Maintained high standards through expert validation and regulatory alignment
Overall, the solution has set a new industry benchmark for efficiency and precision in contract review and compliance, enabling organisations to reinvest time savings into handling greater volumes and more strategic work. It also allows internal teams to focus on strategic priorities without compromising legal accuracy or quality.
"An in-house team at the firm developed a generative AI system for carrying out high-volume contract reviews for financial institutions, launched in November 2024. The system uses a series of AI prompts with human supervision to significantly cut time spent assessing regulatory compliance and transfer pricing requirements, and enabled comprehensive contract reviews."
FT Innovative Lawyers Asia-Pacific 2025 Awards - Shortlisthttps://www.ft.com/content/9e162faf-b665-4d04-8dc2-3059a3403651gsap_scrolltrigger
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