The Jelmoli department store on Zurich's Bahnhofstrasse is being closed. For the operating real estate company, Swiss Prime Site (SPS), the closure represents an enormous feat of strength - especially in legal terms: the content of over 1,000 current contractual relationships must be reviewed and adapted to the new circumstances. How can such complexity be managed? SPS decided to use Legartis' artificial intelligence for contract analysis to meet this challenge. This identifies and extracts relevant data points from the contract documents. Once the data quality has been validated, the necessary contract amendments can simply be output in Word format to the full satisfaction of the stakeholders.
The entire project took no longer than 2 months. Find out more about this prime example of the successful use of Legartis AI for contract analysis!
The project: Closure of the Jelmoli department store
The Jelmoli department store in Zurich is owned by SPS. It offers a diverse range of international brands and many services on six floors. Due to changing consumer habits and the growth of online retailing, SPS has decided to close and transform the department store in its current form. In this context, it is necessary to review all existing contractual relationships and adjust them if necessary.
General conditions
- Project start: 08.09.2023
- Goal: Complete contract amendments by the deadline of 24.11.2023
- Challenge: Identification of relevant contracts and extraction of contract data points for over 1,000 unstructured contract documents
- Requirements: Development of a cost- and time-efficient workflow for document analysis and contract adjustment letters with the highest quality standards
SPS: Evaluation of the project partner
SPS first explores the options. The first idea is to hire a large law firm that has the necessary resources (i.e. the required number of lawyers) to deal with the pile of documents on time and guarantee correct contract amendments. However, this concentrated expertise comes at a price. In view of the volume and variety of documents, the company is also prepared to break new ground.
SPS: Decision in favor of Legartis
Then those responsible come across Legartis. The Swiss legal AI experts recommend the use of artificial intelligence to analyze contracts. In this way, SPS achieves high quality at around 10 percent of the costs that would have been incurred by hiring a large law firm. The proven and cost-effective AI solution impresses SPS with its quality and the speed with which it delivers results.
The cost-benefit factor plays a key role in the decision: compared to traditional manual approaches, the AI solution offers considerable savings potential in terms of time and personnel costs without compromising on quality, as Legartis contractually guarantees this. The decision in favor of Legartis AI and the go-ahead for the project was therefore given at the beginning of September 2023.
Requirements for Legartis contract analysis AI
For SPS, it is crucial that the technology meets the highest standards in terms of precision and reliability.
The AI is to analyze over 1,000 active contract documents for specific data points, identify and extract relevant contracts and contract data points. The relevant contracting parties are then to be informed in a timely manner with corresponding contract adjustment letters. This is to be done with a high degree of precision and accuracy.
Project process
Legartis' leading Legal AI technology first learns to recognize and filter out the right data points from the contract documents. All relevant data points are then exported to an Excel list. The data provided by the AI is automatically imported into prepared contract amendment letters.
AI contract analysis: four steps to contract adaptation
- Extraction of data points: Legartis AI analyzes all contract documents, recognizes the relevant contract data and extracts the data points that are relevant to the project.
- Validation with test sets: Legartis uses various validation procedures to check whether the data points obtained meet the requirements. Legartis uses a test pipeline with evaluation mechanisms for this purpose.
- Validation by SPS: SPS checks the quality of the data extracted by the AI into an Excel list.
- Creation of contract adjustments: The data supplied by the AI is automatically imported into prepared contract adjustment letters.
Results: Impressive precision and efficiency
The project is a complete success: the AI-supported contract analysis identifies the relevant contracts and contract content from over 1,000 contract documents and informs the contracting parties on time. All contract adjustment letters are sent out without errors.
There is no negative feedback on the formalities of contract amendments - neither from contractual partners nor from internal stakeholders. Within SPS, the professionalism and efficiency of the processing is positively emphasized.
Jürg Sommer, General Counsel von SPS, is delighted:
“Thanks to the use of Legartis, we were able to complete the complex contract adjustment process in high quality at comparatively low cost. Legartis AI met our expectations and showed what this technology can achieve: high precision and speed in a complex process.”
Advantages of Legartis AI for contract analyses
- Efficient: instead of employees having to laboriously read every contract and type out data records, the AI does it for them. A real relief for the company.
- Reliably error-free: A well-trained AI does not make any careless mistakes. There were no transposed figures in the Jelmoli project either. The AI reliably extracts the data correctly.
- Cost-effective: Qualified legal experts have their price. AI tailored to the company's needs, such as that from Legartis, requires significantly fewer financial resources.
- Fast: Tasks in the area of contract analysis are often repetitive and cannot be accelerated by greater knowledge. Only AI with its automated processes can ensure speed.
The Jelmoli project impressively demonstrates how powerful highly specialized artificial intelligence can be for a clearly defined task like this - and that companies should also take full advantage of contract analysis in the post-signing phase if they want fast, precise results.
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