Enhancing Lease Reviews with AI Technology
Efficiency and accuracy are paramount in lease reviews. The parties to any transaction involving the transfer of real property should fully understand the legal obligations, rights, and potential liabilities associated with the property before any transfer occurs. This knowledge can significantly affect the financial and operational outcomes for the new owner after the transaction is completed, regardless of whether it is part of an M&A transaction, a standalone property sale, a lease transfer, or any other type of real property transfer. Legal due diligence, including lease review, is a crucial step in ensuring that all such implications are identified and managed appropriately.
Traditional manual review processes can lead to inaccuracies and are extremely time-consuming. In fact, according to a survey from CLOC, respondents spent on average 45 minutes locating a contract and 84 minutes finding certain languages or clauses within the contract. Now, consider how many contracts and lease reviews come across their desks in a month and a year, and that’s precious time that could have been spent advising clients on the substantive issues in those contracts.
Enter Kira, an AI-powered contract review and analysis platform that has revolutionized how legal teams approach lease review workflows. In this blog post, we’ll explore the transformative impact of Kira’s technology on lease reviews, highlighting its ability to enhance accuracy and productivity, provide earlier risk identification, and support the ability to provide differentiated value to your clients. Whether you’re conducting a full-scope lease review, analyzing specific issues, or comparing multiple documents against a form agreement, Kira offers a comprehensive solution that caters to the needs of real estate professionals. Let’s dive in to uncover how Kira can transform your lease review processes and elevate your legal practice.
Revolutionizing Lease Reviews with Kira
Kira has significantly enhanced the efficiency and accuracy of lease reviews for over 10 years. It is designed to automatically identify, extract, and summarize essential concepts and data points from lease and other real estate-related documents, making it an indispensable tool for real estate professionals.
Enhancing Efficiency and Accuracy
The primary advantage of using Kira in lease reviews is its ability to streamline the review process, saving both time and resources. Here’s how:
- Faster and More Accurate Review
Kira acts as the first set of eyes on each document, identifying, extracting, and—with optional generative AI—summarizing key concepts and data points to expedite the review process. This automation significantly reduces the time required to comb through leases, allowing legal teams more time to focus on more complex analysis and strategizing. By optimizing workflows, Kira simplifies document assignment, progress tracking, and quality checks, ensuring that review projects are completed more efficiently and accurately. In fact, Deloitte accelerated their lease reviews by 30% with the use of Kira. - Earlier Risk Identification
By extracting critical information upfront, Kira allows for earlier identification of potential issues, enabling quicker and more effective risk management and allocation between parties. This proactive approach helps mitigate risks before they escalate, providing greater assurance to clients and stakeholders. Kira’s tagging, flagging, summarization, and other adaptive workflow features create a seamless process for identifying and addressing “red flag” issues, ensuring that nothing important is overlooked.
Real-World Applications of Kira in Lease Reviews
Kira’s built-in functionalities provide immediate value across various scenarios, from comprehensive reviews to specific issue analysis:
- Full Scope Lease Review
In contexts like real property acquisitions, M&A transactions, and financing, Kira helps in the creation of comprehensive diligence reports by identifying and extracting numerous data points and clauses and provides visualizations of aggregated results about the relative frequency or relationships between critical provisions and clauses. This ensures that all relevant information is captured and analyzed efficiently, providing a thorough overview of the lease terms and potential issues. - Narrow Scope Lease Review
For specific issues such as termination rights, Kira quickly identifies relevant data points and can generate summaries of those data points using its optional generative AI Smart Summaries capability. This focused approach means users can address particular concerns or questions swiftly, enabling them to provide clear and concise information to clients with total confidence. - Bulk Lease Comparisons
Kira’s Comparisons tool highlights deviations from standard forms, which is particularly useful in reviewing, for example, shopping mall leases. By comparing multiple documents against a known standard, Kira helps ensure consistency and compliance with established terms, making it easier to spot discrepancies and potential issues, and resolve them sooner.
Unlocking Additional Value with Custom Functionality
Kira’s no-code custom smart field builder, Quick Study, allow users to leverage their own documents to capture unique lease concepts and data points not covered by built-in fields. This customization, which uses the same technology that Litera’s in-house Legal Knowledge Engineering team uses to produce Kira smart fields, is particularly useful for capturing sector-specific clauses or “green” leasing concepts, enabling users to capitalize on the expertise of their own subject matter experts and to differentiate themselves in the market.
By training custom fields on an organization’s proprietary data (which cannot be accessed or reverse engineered by anyone else), users can tailor Kira’s capabilities to their specific needs, addressing niche legal issues or integrating specialized industry knowledge. This bespoke functionality allows firms to maximize the value of their collective internal data and enhance their competitive advantage.
Future Enhancements
Looking ahead, Kira will introduce new features to further streamline the lease review workflow, designed to make each stage of the review process more efficient and intuitive.
Kira is a powerful solution for AI-enhanced lease reviews, providing faster, more accurate analysis, earlier risk identification, and the ability to offer differentiated client value.
To see why 94% of the top global real estate law firms ranked by Chambers choose Kira, and to explore how Kira can transform your lease review process, we invite you to watch our on-demand webinar, “Use Cases for AI in Legal: Commercial Lease Review,” available here. Schedule a Kira demo here.
