Artificial intelligence could soon handle CRE transaction paperwork
Applications pairing artificial intelligence (AI) and legal services have gained a lot of traction in recent years. According to a recent study from legal contract review platform LawGeex, AI can now outperform lawyers, specifically when reviewing Non-Disclosure Agreements (NDAs) and spotting risks in legal documents.
In the study, 20 attorneys and the AI software each reviewed the same five NDAs. Attorneys reviewed the documents with an average accuracy rate of 85 percent in a time of 92 minutes. AI, on the other hand, had an average accuracy of 94 percent in just 26 seconds of review time.
Why does this matter for CRE?
In the near future, the vast majority of professionals in the CRE industry may consult AI platforms for their own document review. CRE sales contracts can be extensive and require careful review and negotiation. Many brokers and firms could soon entrust AI platforms with CRE sales contracts and other documents associated with major CRE transactions. AI could review for unfair stipulations and clauses, protecting parties on both ends of the transaction.
Fast, accurate contract review can cut down on the time it takes to close a property, allowing brokers to close more deals in less time. And with the help of AI, brokers can focus more on the most important part of a CRE deal: personal relationships.
How should brokers prepare for AI to review documents?
If you choose to adopt AI contract review tools –– in addition to other time-saving tools like marketing software –– you can prepare for more facetime with clients instead of spending hours going back and forth over transaction documents.
As we’ve said before, there’s no need to worry about being disintermediated by technology like AI. On the contrary, brokers who take advantage of AI tools will be at a strong advantage against competitors who do not. Read more about how why you shouldn’t be intimidated by an AI disruption in the CRE industry in our resource: “Demystifying the future of artificial intelligence.”