www.rcaonline.org Contract Compliance Trends: Optimizing Technology and Outsourcing Senior Fellow from Practice: Christopher S. Harrison, CEO of Sterlington Legal Solutions Guest Speakers: Richard Canedo, Partner & Director of A.I. at Sterlington Legal Solutions Jamie Sklar, General Counsel at Fiduciary Network, LLC
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Contract Compliance Trends: Optimizing Technology and Outsourcing · 2019-12-01 · Contract Compliance Trends: Optimizing Technology and Outsourcing Senior Fellow from Practice:
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www.rcaonline.org
Contract Compliance Trends:
Optimizing Technology and
Outsourcing
Senior Fellow from Practice:
Christopher S. Harrison, CEO of Sterlington Legal Solutions
Guest Speakers:
Richard Canedo, Partner & Director of A.I. at Sterlington Legal SolutionsJamie Sklar, General Counsel at Fiduciary Network, LLC
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Law firm aversion to innovation and technology suggests change will be slow --"Chief Legal Officers have rated law firms a median score of 3 out of 10 every year from 2009 to 2016 in the question of "law firms' seriousness about changing their
legal service delivery model"Source: [1] 2016 Altman Weil Chief Legal Officer Survey
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PART 2 – Innovative Approach to Contract Compliance
• Converting unstructured legal text into structured, digitized form• Advantage of having entire set of docs in OCR
AI legal tech (NLP+ML)
• Legal AI is fast and easy for standard contract terms • Automatically find easy data points; reviewer often only confirms AI's result
Speed
• Great for teaching the AI to find specialized provisions, esp in large doc sets• Simultaneously train junior associate and AI with systematic approach.
‘Training’ the AI (machine learning)
• Project management tools allow many attorneys to review documents at once• Certain provision types can be flagged for specialists (Tax, Finance, ERISA)• Workflows streamline senior associate review of junior work
Problem – Thousands of HIPAA forms in data set. Does
each insured have a compliant, transferable HIPAA form (so that the new owner
may obtain the Insured’s medical records)?
HIIPAA forms must have a number of provisions to be valid; older forms often are
missing a necessary provision.
With Legal AI, an attorney can program the AI to identify whether each necessary provision is present. • The ‘output’ is a “1” or “0” (‘yes’ or ‘no’) for each provision. • After extracting all answers for each provision type, a simple formula in
Excel can be run to analyze whether all two thousand HIPAAs are valid or not.
• A task that would normally take several hours of opening/closing files by junior associates writing down unanalyzable notes, can be automated and analyzed in a fraction of the time and cost of the traditional method.
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Integrate Database to System for Automating Tasks: Managing Database, Automating Tasks
Deciding when/how to use Prioritizing key problems/pain-points
1 2 3
Identifying low-hanging fruits for ‘innovative’ method
• Identify key documents/deals
• Prioritize risks based on urgency and magnitude
• Large volumes of similar contracts?
• How complex and specialized is the legal analysis?
PART 3 Perspectives from General Counsel
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Best Practices from GC Perspective on Contract Compliance
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CONCLUDING REMARKS
• Why contract compliance matters
• How to address problem of mitigating risk
• Traditional vs. Innovative method/ pros/cons summary
• Take-home message: • think big-picture and long-term;
build automated, integrated systems.
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SPEAKER BIOGRAPHIES
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Christopher S. Harrison is the founder of Sterlington Legal Solutions. He is focused on innovation in law through the use ofprocess management, data analytics, and technology-enabled services. He is the author of Make the Deal: Negotiating Mergers & Acquisitions, which was published by Bloomberg. He teaches M&A at the NYU School of Law.
Richard (“Rick”) Canedo is a Partner & Director of A.I. at Sterlington Legal Solutions, where he applies artificial intelligence applications to legal services, such as life settlement diligence, M&A and NDAs. Rick’s also has experience in structured finance and securitizations.
Jamie Sklar is the General Counsel of Fiduciary Network, LLC. He is a corporate attorney with over 18 years of experience in managing mergers and acquisitions, private equity, fund formation and other complex transactions.