Case Study: AI-Powered Contract Intelligence Platform

Legal & Compliance

AI-Powered Contract Intelligence Platform

The Challenge: Manual Contract Review at Scale

A leading law firm managing over 50,000 contracts per year was drowning in manual review processes. Legal teams spent countless hours reading through complex agreements to identify key clauses, obligations, renewal dates, and risk factors. Critical provisions were frequently missed, leading to compliance gaps and unfavorable terms going undetected. The firm needed a way to systematically extract intelligence from its vast contract portfolio while maintaining the accuracy and nuance that legal work demands.

Our Solution: NLP-Powered Contract Intelligence

Lydatum designed and deployed an AI-powered contract intelligence platform that combines natural language processing with domain-specific legal knowledge to automate contract analysis at scale:

• Intelligent Document Ingestion: We built automated pipelines using Azure Cognitive Services to ingest contracts in multiple formats (PDF, DOCX, scanned images), extract text with high fidelity using OCR and document intelligence models, and normalize content for downstream analysis.
• NLP/LLM Clause Extraction: Fine-tuned large language models were deployed to identify and classify over 200 clause types across contract categories, including indemnification, termination, liability caps, change of control, and data privacy provisions. The system learned from the firm's own annotation patterns to achieve domain-specific accuracy.
• Custom Risk Scoring Engine: A proprietary risk scoring framework evaluated each contract across multiple dimensions including financial exposure, regulatory compliance, counterparty risk, and obligation complexity. High-risk contracts were automatically flagged and routed for priority review by senior attorneys.
• Centralized Analytics in Snowflake: All extracted contract metadata, clause classifications, and risk scores were stored in Snowflake, enabling portfolio-wide analytics, trend identification, and compliance reporting through interactive dashboards accessible to both legal and business stakeholders.

The Impact: Faster Reviews, Higher Accuracy, Significant Savings

The contract intelligence platform transformed the firm's approach to contract management and risk oversight:

By automating the extraction and classification of key contract provisions, legal teams could focus their expertise on high-value judgment calls rather than manual document review. The risk scoring engine surfaced previously hidden exposure across the contract portfolio, enabling proactive renegotiation of unfavorable terms. The centralized analytics platform provided unprecedented visibility into contractual obligations and compliance posture, supporting more informed decision-making across the organization.

Technologies Used: Azure Cognitive Services, Large Language Models (LLM), NLP/Named Entity Recognition, Snowflake, Custom Risk Scoring Framework, Python