Welcome to another edition of our newsletter! This week, we're diving into the fascinating world where law meets technology. We'll explore how Generative AI (GenAI) is revolutionizing the way we understand and interact with legal agreements. Plus, don't miss our spotlight on LoanWatch, a game-changer in asset-based lending, and a thought-provoking piece on how AI is reshaping the future of software.
The Traditional Role of Lawyers
Lawyers have always been the navigators of the complex legal seas. They keep us out of trouble, help us when we're in it, and provide invaluable insights during negotiations. Their expertise in interpreting the labyrinthine language of the law is unmatched.
Enter Generative AI
But GenAI is a huge threat to lawyers because it democratizes the law. GenAI is proving to be incredibly adept at many tasks traditionally handled by lawyers. Did you know that ChatGPT recently took a simulated bar exam and scored in the top 10%? Newer models are only getting smarter and more efficient.
While GenAI isn't perfect—it can sometimes "hallucinate" and generate false case references—it's a powerful tool when used correctly. We'll cover techniques to mitigate these issues in an upcoming newsletter, so stay tuned!
Legal documents are notorious for their complexity. They present two main challenges:
Simplify the Language
GenAI can act as your personal translator, converting dense legalese into plain English. Imagine taking a 40-page contract and getting a one-page summary that highlights key points and risks. You can even ask GenAI to list the risks in order of probability or financial impact. This not only saves time but could also save you thousands in legal fees.
Navigate the Web of References
Contracts are like puzzles, with pieces scattered throughout the document. Definitions in one section impact clauses in another, and you're left flipping pages to make sense of it all.
Example:
"Subject to Section 3.2, Software may be licensed to Resellers unless the Reseller only sells in Designated Geography and has achieved Gold Status as defined in Exhibit C."
To comprehend this, you'd need to refer back to:
GenAI can unravel this complexity in seconds, giving you a clear, concise explanation.
1. Load & Analyze
When you need to understand a contract or multiple agreements, load them into a GenAI tool. Ask for summaries tailored to your desired length and complexity. Request an analysis of business and legal risks. This gives you a solid foundation before consulting your attorney.
2. Load & Chat
Treat GenAI as your virtual legal assistant. After loading your documents, engage in a conversation:
The Bottom Line
While GenAI won't replace your attorney—at least not in the immediate future—it can drastically reduce the time and cost involved in legal consultations. By handling the heavy lifting, it allows your attorney to focus on high-level strategy and advice.
What is Asset-Based Lending (ABL)?
ABL is a type of financing where loans are secured by collateral, typically a company's assets. While physical assets like factories and real estate are considered, banks far are more interested in near-term cash flows—specifically, accounts receivable (AR).
The Complexity of Calculating Borrowing Bases
Determining how much a company can borrow isn't straightforward. Banks evaluate several factors that affect repayment risk:
Each lender has unique criteria, adding layers of complexity. This is where LoanWatch comes into play.
Why LoanWatch?
LoanWatch is a highly configurable and efficient solution for calculating borrowing bases. Used by some of the world's largest banks, it adapts to different lending criteria, streamlining the entire process.
Meet Charie, our brilliant quality assurance lead who…
Name: Charissa A. Purisima
Position: Quality Assurance Analyst Team Lead
As a QA Analyst Team Lead, I am responsible for overseeing a team of Quality Assurance (QA) analysts throughout the software development process. I provide guidance and support to my team, fostering their professional growth. I ensure that testing is thorough and effective, whether it's manual or automated, and I work closely with developers, product managers, and other stakeholders to maintain quality standards at every stage.
I advocate for the customer's quality standards, ensuring that the final product aligns with what the customer expects. My focus is on ensuring that users can easily navigate and interact with the software, identifying any obstacles or confusing elements. I also promote “Empathy-driven Innovation” where technological advancements are guided by an understanding of and sensitivity to the diverse needs of users, particularly for those with disabilities, ensuring software accessibility for all users.
In my four years as a QA Analyst, collaborating with talented individuals has shown me the importance of diverse perspectives, as they bring unique approaches to problem-solving and often lead to more innovative solutions. Constructive feedback from experienced colleagues has been instrumental in my personal and professional development, helping me refine my skills. It has also highlighted the crucial role of clear and open communication in fostering successful teamwork.
The Traditional Software Landscape
Building software has always been a resource-intensive endeavor. It requires:
Because of these constraints, software companies focus on common denominators—features that satisfy the majority. This often leaves users wishing for functionalities that cater to their unique needs.
The AI Revolution
AI is set to disrupt this status quo by:
Jevons Paradox in Software Development
Enter Jevons Paradox, an economic theory suggesting that increased efficiency (lower costs) leads to higher overall consumption. Applied here:
What This Means for Developers
Far from rendering software professionals obsolete, AI will:
A Bright Future Ahead
Embracing AI isn't just beneficial; it's essential. Those who adapt will find themselves at the forefront of a booming industry, crafting the bespoke solutions of tomorrow.
At MPH International, we're experts in building market-winning mobile and web apps. Specializing in cutting-edge GenAI technologies, we have deep expertise in industries like oil & gas, banking, cybersecurity, and SaaS applications. We're here to help you navigate the future with innovative solutions tailored to your needs.
Stay Tuned!
We hope you found this newsletter insightful and engaging. In our next edition, we'll explore more on mitigating risks when using GenAI and delve deeper into how AI is transforming various industries.
Eager to discuss how GenAI can benefit your business? Contact us today!
Best regards,
The MPH International Team
Mike Hogan
September 1, 2024
