For the first time ever, Luminance's AI called Autopilot exerted its ability to negotiate a non-disclosure agreement autonomously with another AI without any human intervention. Demonstrated at their headquarters in London, the AI concluded the entire process in minutes, leaving the signing of the agreement as the sole remainder of human action.
For the first time ever, Artificial Intelligence has been able to autonomously negotiate a contract with another AI, without any human interference. Luminance, a British AI firm, has created a system while building off of its own proprietary language model (LLM). This language model is a type of algorithm that can process language, as well as generate it. Jaeger Glucina, Chief of Staff and Managing Director of Luminance, says that this AI is meant to reduce the amount of paperwork that lawyers usually have to complete on a daily basis. Glucina also claimed in an interview with CNBC that Autopilot is capable of handling the day-to-day negotiations, granting lawyers the freedom to use their skills in other areas. In other words, this AI is able to complete the full process, from opening up the document in Word to sending it to DocuSign. Autopilot is much more advanced than Lumi, a chatbot-like legal co-pilot from Luminance. This program, which identifies red flags and potential issues within a document, can work without a human being, but a human is able to review the changes made by the AI. CNBC also reported that they were able to witness the technology in action at Luminance's London headquarters. The contract went from the beginning stages to being finalized in just a few minutes.
There are two lawyers, one from Luminance's general counsel and the other from ProSapient, a research firm; their photos displayed on monitors on either side of the room. However, the forces driving the contractual analysis, examining its content and making recommendations are all AI-controlled. During the demo, the AI negotiators discussed and debated a Non-Disclosure Agreement that one of the parties wanted the other to sign. NDAs pose a challenge for lawyers due to the stringent secrecy conditions and the comprehensive assessment they need to make, as highlighted by Glucina. He said that commercial teams are often waiting on legal teams to finish NDAs in order to advance to the next stage of operations, so it has a huge effect on the business -- from holding up revenue to delaying new partnerships and general business proceedings.
Legal teams are reportedly investing around 80% of their efforts in reviewing and negotiating routine documents, as indicated by Glucina. Luminance's software combs through these documents, highlighting controversial clauses in red. Then, the AI rewords those terms into something more agreeable, and keeps track of the modifications it implemented throughout the process. The AI takes into account businesses' customary practices when negotiating contracts. For instance, the NDA proposes a six-year period for the agreement, in contrast to Luminance's policy. In response to this, the AI automatically reworks it to include a three-year term for the contract instead.Glucina noted that organizations should be utilizing a device like Luminance Autopilot as opposed to something like OpenAI's software due to the fact that it is tailored specifically to the legal industry, whereas tools like ChatGPT, Dall-E, and Anthropic's Claude are more general-purpose.This view was echoed by Peel Hunt, the U.K. investment bank, in a note to clients last week. The analysts at the firm commented that “We believe companies will leverage domain-specific and/or private datasets (e.g., data collected throughout business operations) to improve general-purpose large language models (LLMs) to domain-specific ones. These should offer higher performance than more general-purpose LLMs such as OpenAI, Anthropic, Cohere, etc.”Luminance did not disclose the price for their software. Their services are available through annual subscription plans, granting unlimited access to users everywhere. The company has many high-profile clients, such as Koch Industries, Hitachi Vantara, and a number of law and consulting firms.
Luminance, founded in 2016 by a group of mathematicians from the University of Cambridge, offers software for the analysis of legal documents with the aim of boosting the productivity of lawyers. With an AI- and machine-learning-based platform, managers can easily monitor and manage complex legal data sets. Invoke Capital (created by tech entrepreneur Mike Lynch), Talis Capital, and Future Fifty are some of the company's main backers. Lynch, co-founder of Autonomy, is presently embroiled in a fraud case resulting in his potential extradition from the U.K. and he departed Luminance's board of directors in 2022, though he still retains his role as a major investor.
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