AI Case Study

JPMorgan reduced lawyers' hours by 360,000 annually by automating loan agreement analysis with machine learning software COIN

JPMorgan uses its proprietary machine learning software (COIN - Contract Intelligence) to automate the work usually undertaken by lawyers to analyse commercial loan agreements by extracting contract attributes in a few seconds.

Industry

Professional Services

Legal

Project Overview

According to The Independent, COIN software "does the mind-numbing job of interpreting commercial-loan agreements The bank plans to use it for other types of complex legal filings like credit-default swaps and custody agreements. Someday, the firm may use it to help interpret regulations and analyze corporate communications." TechEmergence states that COIN has derived "150 attributes from 12,000 commercial credit agreements and contracts in only a few seconds."

Reported Results

Automated a job that used to take lawyers 360,000 hours annually and "has helped JPMorgan cut down on loan-servicing mistakes, most of which stemmed from human error in interpreting 12,000 new wholesale contracts per year" (The Independent).

Technology

In-house machine learning software along with in-house computing cloud Gaia.

Function

Legal And Compliance

Legal

Background

While the financial industry has long touted its technological innovations, a new era of automation is now in overdrive as cheap computing power converges with fears of losing customers to startups. Made possible by investments in machine learning and a new private cloud network, COIN is just the start for the biggest U.S. bank. The firm recently set up technology hubs for teams specialising in big data, robotics and cloud infrastructure to find new sources of revenue, while reducing expenses and risks.

Benefits

Data

Commercial loan agreements