JP Morgan Chase’s Contract Intelligence (COiN)
- 25 June 2019 | 75 Views
In today’s connected world, advanced technologies have begun to play a vital role in human life. A couple of such technologies are Artificial Intelligence and Machine Learning. Companies are increasingly deploying machine learning based solutions in order to streamline their operations and cut costs. One such company is JP Morgan Chase. The company has started to automate some of the work carried out by its law firms, by making use of machine learning. JP Morgan Chase expects that this new technology will help it in cutting down costs as well as saving time.
One of the key components of corporate law is to review documents. This process is long and drawn out. It requires a lot of time and painstaking efforts to be put in. Due to the efforts required, clients such as JP Morgan Chase have to pay out large sums to the lawyers. Many law firms around the world have been attempting to find a more viable solution. JP Morgan Chase has emerged as a pioneer in this regard. In 2017, the company announced a new software known as COiN. This software has been developed in order to automate the document review process. This automation, once error proof, can produce accurate results, consuming only a few seconds. It’s an alternative to the conventional documentation done by lawyers, which usually takes days to weeks time.
The first stage of testing the COiN software included the review of JP Morgan’s credit contracts. The key technique that is used by the software is known as image recognition. By using image recognition, the software is able to compare and distinguish between different agreements. The company has also indicated that COiN is an unsupervised learning software, which means that there is minimal human involvement once it has been deployed. This is a significant step that cuts down the time, resources, and efforts required in order to review the documents. The company has also stated that COiN can identify over a hundred attributes of the contracts and then classify them into different groups.
So far, the company has indicated that the software has proved to be even more accurate than the lawyers who have been previously working on the documents. In addition to this, the software has also saved hundreds of thousands of man hours. The bank’s new software is already proving to be cost-effective, even though it has not been deployed on a large scale yet. The company has also indicated that it wants to expand the ambit of the software, and cover other forms of contracts apart from credit agreements. Further, it also aims to interpret and classify new regulations that are formulated by the authorities.
To sum up, it is noteworthy that JP Morgan Chase is not only minimising its cost and saving time but is contributing to a more efficient legal industry. The company’s COiN software is an important step in the right direction. By further refining the key algorithms of the software, the company may be able to realise even more benefits in the future. It is clear that machine learning is the future, and it could help companies in getting more work done in a shorter timespan. How large banks expand their plans in parallel with this manmade yet manless technology, would be a critical measure.