Allen & Overy launches AI contract drafting tool
Make us a preferred source
Make us a preferred source on Google
The news: Magic Circle firm Allen & Overy (A&O) has launched a contract drafting tool titled ContractMatrix in partnership with Microsoft and legal AI startup, Harvey.
The numbers: A&O saw a 7% increase in revenue in the 12 months to April 2023, a total of USD2.5 billion ($3.69 billion), making it the second largest firm in the UK by revenue.
The context: ContractMatrix is a contract negotiation tool that leverages AI and other software to build new revenue streams and boost efficiency for in-house and A&O lawyers. Over 1,000 A&O lawyers are already using the tool, and the firm says it saves approximately seven hours when negotiating a contract. The service draws on existing templates for contracts (like NDAs or M&A terms) to draft agreements that lawyers can review. The service runs on Microsoft Azure, using products from both Harvey and the Microsoft Azure OpenAI Service.
The use of this type of AI technology is expected to reduce labour intensive (typically junior) roles across the legal sector, however some firms remain concerned about potential security risks or are waiting to see which solutions will be the most effective before investing too heavily.
What they said: David Wakeling, A&O partner, and head of the Markets Innovation Group, said: "ContractMatrix frees lawyers from processing and allows them to do what they do best: smart, fast, and strategic decision making. Microsoft and Harvey are the perfect partners to launch such a product. The A&O lawyers who have used – and helped to develop – ContractMatrix have been blown away by how much more efficient it makes them."
The source: Allen & Overy Press Release
