JPMorgan Chase introduced the software, COIN, for Contract Intelligence, to interpret commercial loan agreements that, until the project went online in June, took some 360,000 hours of lawyers’ time annually. In addition, the software reviews documents in seconds and is less error-prone. The bank is looking for further ways to deploy the technology - which learns by ingesting data to identify patterns and relationships with complex legal filings such as credit-default swaps and custody agreements other areas the software could automate.

Pace of change

The move demonstrates the pace at which technology is being embraced to help professional services automate tedious, manual tasks. JP Morgan has also 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. In total the firm has set aside $9.6 billion for its wider technology budget – one-third of which is for new initiatives. 

Innovation

JP Morgan is the latest institution to put a programme for innovation in place. The bank joins a growing list of companies which are looking at ways to make legal operations run more efficiently. This week a group of US corporates arrived in London to meet their European counterparts to discuss collaboration and new ideas. The Corporate Legal Operations Consortium (CLOC) joined 30 corporate counsel at an event hosted by BT's general counsel Dan Fitz. Meanwhile, the University of Ulster has set up the first legal innovation centre in the UK and Ireland to focus on the delivery of legal services.