AI-based lease abstraction, also known as machine learning powered lease abstraction refers to the process of abstracting leases using a lease abstraction software. Typically, AI-based lease abstraction involves uploading the lease and its related documents onto a lease abstraction platform or software, which then uses artificial intelligence to extract the key financial and non-financial data from the documents and presents it in the desired format. The output is usually based on a standard template that is already uploaded or present in the system. AI-based lease abstraction is becoming increasingly popular because it offers some great advantages over the traditional, manual lease abstraction process. Some of the benefits of AI-based lease abstraction include-
Volume and speed
Since AI-based lease abstraction involves deploying a lease abstraction software to abstract the leases, it is way faster than manual lease abstraction. Depending on the type of lease and accompanying documents, abstracting a lease manually could take anywhere from one hour to three, which can be accomplished in just a few minutes using a lease abstraction software. This lightning speed also makes it possible to get more leases abstracted within a short time period, thus improving the overall volume of leases abstracted significantly.
Standardization
With AI-based lease abstraction, you enjoy greater consistency and standardization when it comes to your lease abstracts. For example, when you have lease analysts abstracting leases, chances are, 2 different lease analysts may abstract a clause that’s essentially the same in different manners. While the meaning may still be the same, the overall sentence structure and words used may vary. Similar challenges may be observed in numerical fields as well. For example, someone may put the date as Jan 1, while another lease analyst might use January 1. When you have a lease abstraction software abstracting your leases, you don’t have to worry about consistency and standardization.
Better utilization of resources
With AI-based lease abstraction in the picture, you can divert your in-house lease analysts (if you have a in-house lease abstraction team) towards other, more critical lease portfolio management tasks such as CAM audits, Expense recovery, Invoice processing, etc.
Scale up faster without pressure on your in-house lease team
AI-based lease abstraction allows you to scale your lease portfolio without overburdening your in-house lease abstraction team. It ensures you have the lease abstracts of all the leases in your portfolio, no matter how recent. Just input the lease documents into the software and wait for a couple of minutes to get an abstract that you can use for your lease administration purposes.
AI-based lease abstraction can thus play a key role in
- Helping you stay on top of your lease portfolio
- Make your lease portfolio management more cost-effective and efficient
- Allowing you to scale your lease portfolio without additional pressure on your existing lease analysts
- Helping you easily create and maintain a standardized set of lease abstracts
However, AI-based lease abstraction does have a major drawback. It may not be as accurate and trustworthy as manual abstraction done by expert lease analysts. Leases are complex documents, sometimes running to hundreds of pages, with multiple addendums and amendments. There may be emails or in some cases even handwritten notes specifying changes to them. While AI-based lease abstraction software platforms are intelligent, there are chances that something may slip through the cracks affecting the accuracy of your lease abstract. Hence it makes sense to have experienced lease analysts review all the leases abstracted by lease abstraction software platforms to ensure 100% accuracy of your lease abstracts.