JP Morgan COIN (Contract Intelligence)
A JP Morgan COIN (Contract Intelligence) is a 1st-party legal contract review application by JP Morgan.
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- Counter-Example(s):
- See: Document Review System.
References
2018
- https://d3.harvard.edu/platform-rctom/submission/jp-morgan-coin-a-banks-side-project-spells-disruption-for-the-legal-industry/
- QUOTE: Ask a young corporate lawyer the most painful part of his job and you’ll probably hear “doc review.” Document review is the process of lawyers poring over thousands of documents to determine which are relevant for litigation. Rote and time-consuming, this work is mind-numbing for attorneys and expensive for clients. Largely because of this process, McKinsey reports that nearly a quarter of a lawyer’s job can be automated. [1] As a result, many law firms are looking to automate the document review process (top firms already outsource it).
But incentives are misaligned. Law firms generally bill by the hour, and clients already squeeze them to reduce hours charged. One academic study concluded that just adopting existing machine learning could reduce lawyers’ billable hours by about thirteen percent. [2] Lawyers would make less money in the immediate future as a consequence. A select few clients have instead begun to productize some of the work of their attorneys. JPMorgan has recently emerged as a leader in this trend.
Last year, JPMorgan announced it had developed and deployed new software called COIN—shorthand for Contract Intelligence—that automates document review for a certain class of contracts. The company first dispatched the program to review thousands of its own credit contracts. The software employs image recognition to identify patterns in these agreements. [3] While JPMorgan has been tight-lipped about the details of the proprietary technology, the bank has stated that the algorithm uses unsupervised learning: by digesting data on the bank’s numerous contracts, it can identify and categorize repeated clauses [4]. The bank reports that the algorithm classifies clauses into one of about one hundred and fifty different “attributes” of credit contracts. [5] For example, it may note certain patterns based on clause wording or location in the agreement.
The software reviews in seconds the number of contracts that previously took lawyers over 360,000 man-hours. JPMorgan’s economic incentive to develop the product is thus self-evident. But what’s more: the algorithm is more accurate than human lawyers. [6] So the bank’s investment in the technology is not just about costs, but also about quality since COIN improves the accuracy of the contract review process.
While automated “technology-assisted legal review” solutions are not new, JPMorgan benefits from the large scale and low variability it has in credit contracts. The bank processes over 12,000 credit agreements per year, which are far less complex than contracts that might better suit human review, such as custom M&A agreements. [7] ...
- QUOTE: Ask a young corporate lawyer the most painful part of his job and you’ll probably hear “doc review.” Document review is the process of lawyers poring over thousands of documents to determine which are relevant for litigation. Rote and time-consuming, this work is mind-numbing for attorneys and expensive for clients. Largely because of this process, McKinsey reports that nearly a quarter of a lawyer’s job can be automated. [1] As a result, many law firms are looking to automate the document review process (top firms already outsource it).
2017
- https://generalcounselnews.com/jpmorgan-software-does-in-seconds-what-took-lawyers-360000-hours/ 2017-March-1
- QUOTE: ... A new JPMorgan Chase & Co. a learning machine called COIN, for Contract Intelligence, is parsing financial deals that once kept legal teams busy for thousands of hours, according to a Bloomberg report.
The company uses the technology to interpret commercial-loan agreements that formerly consumed 360,000 hours of work each year by lawyers and loan officers. The software reviews documents in seconds, is less error-prone and never asks for vacation, writes Hugh Son. ...
- QUOTE: ... A new JPMorgan Chase & Co. a learning machine called COIN, for Contract Intelligence, is parsing financial deals that once kept legal teams busy for thousands of hours, according to a Bloomberg report.
2017
- https://www.findlaw.com/legalblogs/technologist/machine-learning-saves-jpmorgan-chase-360000-hours-of-legal-work/
- QUOTE: ... The lawyer-eliminating program, called COIN for "Contract Intelligence" automates the interpretation of commercial loan agreements, a "mind-numbing job" that would normally be handled by attorneys and loan officers, according to Bloomberg News.
"The software reviews documents in seconds, is less error-prone and never asks for vacation," Bloomberg writes.
The program relies on machine learning algorithms, learning "by ingesting data to identify patterns and relationships." It's part of what Bloomberg describes as "a new era of automation," one that's "now in overdrive as cheap computing power converges with fears of losing customers to startups." ...
- QUOTE: ... The lawyer-eliminating program, called COIN for "Contract Intelligence" automates the interpretation of commercial loan agreements, a "mind-numbing job" that would normally be handled by attorneys and loan officers, according to Bloomberg News.