Wordsmith AI Launches Doc Review ‘Reports’

Edinburgh-based legal tech startup, Wordsmith AI, has launched ‘Reports’, a new capability for doc review and due diligence (DD) exercises, which can reduce the time needed by ‘95%’ they said.

The application ‘pulls insights from any type of contract and presents them in one in-depth and accessible report, utilizing a ready-to-use template of standard agreement types, or by configuring a bespoke report with support from Wordsmith’.

Ross McNairn, CEO of Wordsmith (pictured) told Artificial Lawyer: ‘[We do this] with a combination of several methods. We have extractors that are using machine learning, to various other techniques to identify attributes. Then we use various layers of LLMs to reason through that data and present it in a readable format. It’s the only way to get high levels of precision.’

The company, which has around 20 staff and has raised about $10m so far, including from Index Ventures, explained that it can now provide:

• ‘Advanced reporting tools: Analyze thousands of contracts in minutes to uncover compliance gaps, contract risks, and other critical insights. Bespoke reports can be tailored to meet specific business needs.
• Enablement & training: Wordsmith AI provides unique training programs to help lawyers integrate AI into their workflows, minimizing errors and maximizing efficiency.
• Flexible support: Businesses can operate independently or collaborate with Wordsmith’s team of lawyers for verification and customized reporting.’

And that these capabilities can be deployed for:

• ‘Due diligence: Streamline M&A processes with tools that organize and analyze critical contract data, cutting delays and enhancing accuracy.
• Risk analysis: Extract key details from historic customer and vendor contracts to identify non-standard terms and compliance issues.
• Commercial insights: Optimize strategies by extracting performance data from contracts and summarizing commercial terms across thousands of agreements.’

They gave the examples of a private equity firm that had zipped through its DD review ‘85% faster’ than usual, and a tech company which analyzed ‘8,000 contracts for notification obligations within 24 hours, saving weeks of effort’.

So, there you go. Overall, it looks very useful, especially the ability to extract and organise insights based on pre-made report templates, (see below), e.g. to surface employment info, or reg compliance data, that may be within 1,000s of documents.

Wordsmith works for any jurisdiction, but is optimized for legal standards in the US, UK, and EU. You can extract specific data, concepts or also the lack of something in the documents, which is handy. 

Is there a lot of competition out there already? For sure. Leveraging AI for document review is a busy vertical in the legal tech world. That said, there is always room for a new player. Moreover, Wordsmith is still at a size where plenty of new iterations, perhaps driven by client feedback on what they’d like to see, are likely to come. So, we can expect plenty of innovations and growth ahead.