Terabytes of data have replaced piles of legal documents in real estate.
Legal document preparation, legal research, and document review grow more sophisticated daily due to the rising abundance of data. In the last two years, the amount of legal data available has tripled, and with it, the volume of search and translation tools has risen as well. That growth includes the arrival of artificial intelligence in many legal documents, an emergence that leaves many investors scrambling to understand the high-speed evolution of legal documentation and the internet.
The power of AI with legal documents is not in replacing the human to structure the deal but instead empowering a legal representative or a real estate investor (or both) to be armed with more information faster.
For example, a program skilled in identifying and illuminating the possibility of conflicting content of phrases to be sure the intent and purpose is agreed upon by all parties, can prevent closing-table disputes or the failure of a creative financing agreement like a lease-option deal.
3 Specific Examples:
AI is making strides in the due diligence phrase to research comprehensive and extensive contract analysis. This enables firms to review faster and track deal points from previous deals. It allows for managing the compliance and regulatory issues.
Working with Humans: Together, humans and AI fill gaps that neither alone can fill and reduce risk of conflicts and omissions along with the number of reviewers necessary for each document. This reduces paperwork by improving efficiency when customizing template-based legal documents, something that most law firms and real estate investors do regularly.
Performance Data Extraction & Analysis
Imagine the incredible impact of taking seas of documents that legal associates are drowning in and extracting key data points and performance indicators.
Working with Humans: Use AI software tools with the legal team to identify compliance issues and extract current tenant rents, maintenance costs, expiration dates. Use AI tools set to your specific parameters to uncover hidden costs, maximize revenues, and optimize overall portfolio performance across assets.
Reduce Risk with Optimal Returns
AI programs evaluate performance metrics, data points, and real-time case studies to streamline legal workflow and reduce risk across your investments considering your strategy for generating returns.
Working with Humans: As you modify your strategy and the evaluative parameters on your programs, the value of your results grows daily. Real estate investors may take a “deep dive” into their transactions and due diligence without spending months or years reading through the fine print.
As is always the case with AI and other technology, human advances and technological evolution augment every investors resource base.