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How layered AI turned 750 hours of due diligence into a 48-hour sprint

In a time-sensitive transaction that demanded rapid due diligence, Reed Smith Legal Solutions overcame an otherwise insurmountable time constraint by using a layered AI approach.

The challenge

Our client, a medical supplier operating across 48 states, was preparing for a major divestiture. As part of this transaction, the client needed due diligence on a data set comprising over 350 contracts, amendments, assignments, exhibits, notices, and related documents – including master services agreements (MSAs) and supply and distribution agreements with major vendors. The deal team needed to extract termination rights, change-of-control provisions, assignment restrictions, and consent requirements.

The deal was scheduled to close in less than five days. Traditional manual review would have required an estimated 750 attorney hours, far more than the timeline allowed.

Our solution

The team deployed a combination of AI tools: one AI platform performed the initial extraction, a second tool cross-checked and validated results and highlighted spots for further review, and attorneys conducted spot-checking guided by the AI systems. This configuration allowed the team to extract relevant terms, match amendments and assignments to their related MSAs, identify duplications in the data set, and normalize results within the required deadline.

The results

The team delivered a complete roadmap of the client’s obligations for each agreement, identifying precisely which contracts required notice, which required consent, and which might trigger termination rights. Work that would have taken an estimated 750 hours of attorney time was completed in just 48 hours, reaching the transaction lawyers by the Saturday noon deadline and enabling the deal to proceed on schedule.

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