An AI Solution Reshaped Chemical Company’s Legal Processes

Summary:

By transforming legal processes with an AI platform, the company has increased efficiency and enhanced its ability to maintain compliance in a rapidly evolving regulatory environment.

Client: 

LG Chem is a global leader in chemicals, materials, and advanced technologies.

Problem Statement: 

LG Chem handles thousands of contracts annually, spanning various jurisdictions and languages. The manual review process was time-consuming and prone to inconsistencies, increasing the risk of missing key obligations or legal risks.

LG Chem’s legal team was under pressure to manage increasing workloads without proportional increases in resources. This created a need for technology that could help reduce manual tasks, allowing legal staff to focus on high-value strategic work. 

They were also seeking a technology that could eventually serve as a centralized system for their entire legal team, extending its use beyond the Asia-Pacific offices to include their teams in both the Americas and Europe.

Results: 

• A 30% time-savings on contract review.
• The team spends more time on business-critical ventures.
• Ability to maintain consistency across the reviewing process.

AI Solution Overview:

LG Chem selected Luminance’s AI solution, which integrates machine learning with natural language processing (NLP). Their primary objective for adopting this AI technology was to reduce the time needed for contract reviews while ensuring compliance and consistency throughout the legal team. 

They initially focused on streamlining the review process for standard contracts, such as NDAs. Luminance’s AI is built on a legal Large Language Model (LLM) that has been trained on more than 150 million verified legal documents, giving it an in-depth understanding of common language found in routine contracts like NDAs.

Luminance’s ML algorithms were trained on LG Chem’s historical contracts, enabling the AI to become familiar with the nuances of the company’s contract language and structure. This training phase allowed Luminance to deliver accurate insights tailored to LG Chem’s needs.

Luminance’s platform is capable of automatically flagging changes in regulatory requirements and assessing how these changes impact LG Chem’s existing contracts. This feature helped LG Chem ensure compliance across different jurisdictions, minimizing the risk of non-compliance and reducing the need for manual audits.

For more complex and extensive agreements, such as Supply and Purchase Agreements, the team has leveraged Luminance’s legal chatbot, Ask Lumi. This tool allows any member of the legal team to obtain responses to questions in any language, including Korean. A team member can simply request a summary of a contract, and Ask Lumi will provide a concise executive outline of key information, enabling the team to quickly focus on the most critical aspects of the agreement.

Additionally, the team uses Ask Lumi as a valuable partner in the contract review process, utilizing its clause-by-clause summary function, which is available in both English and Korean, to streamline internal communication. With this AI-powered assistant, the legal team has significantly improved efficiency, resulting in faster turnaround times across the board.

References: 

1. Driving Company-Wide Innovation: How LG Chem is Transforming their Legal Processes with AI. https://www.luminance.com/files/case-studies/LG%20Chem%20-%20%20Driving%20Company%20Wide%20Innovation%20with%20AI%202024.pdf 

Industry: Legal Services

Vendor: Luminance

Client: LG Chem 

Publication Date: 2024