Big law firm Ropes & Gray is building AI to speed up deal document review

Ropes & Gray, a large law firm, is building an AI tool with OpenAI, the maker of ChatGPT, to help with the paperwork behind business deals. The tool is meant for what lawyers call transactional diligence. Lawyers will still review the AI's work before they advise their clients.

What the tool does

Diligence is the careful check a buyer or investor does before closing a deal. It means reading a large pile of documents to find problems. According to the announcement, the AI groups those documents together. It then writes summaries and reports. Lawyers read those grouped documents, summaries and reports before they give advice.

Who it affects

Anyone who buys or sells a company, or raises money, may eventually feel the effect. Document review takes time, and time is part of what clients pay for. A tool that sorts and summarizes could help lawyers move faster. The material does not say how much faster, or whether fees would change.

What is not known yet

• When the tool will be in regular use at the firm.
• How much time or money it will save clients.
• Which types of deals it will handle.
• How the firm will check the AI's accuracy.

What to do

If you are heading into a deal, ask your law firm whether it uses AI for document review. Ask who checks the output and how. The Ropes & Gray approach keeps a lawyer in the loop, and that is a reasonable standard to expect from any firm.