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L E A S E S O F T W A R E W I L L I N C O R P O R A T E
M O R E A I C A P A B I L I T I E S
OpenAI opened the floodgates for
technology providers to bring AI
capabilities to their solutions, creating
significant global demand for AI. Over the
last two years, generative AI has become
ubiquitous. According to PwC's October
2024 Pulse Survey, nearly half (49%) of
respondents said that AI was "fully
integrated" with their core business
strategy.
But one area where we haven't seen a lot
of AI implementation yet is lease
accounting and administration. And that's
changing.
6 Predictions for Lease Accounting and Administration: Prediction #1
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Letting generative AI write leases would
pose problems, but large language models
(LLMs) can help lease professionals review
and summarize leases and other legal
documents, as well as extract specific
information from them. Lease abstraction,
for example, is a tedious, but crucial
process that represents a perfect
opportunity for AI to support lease
administrators. Industry experts see room
for AI to streamline the abstraction of lease
information from soft-copy files, including
translations, empowering global
organizations to save significant time and
freeing administrators to focus on tasks
that require their expertise, not just their
time.
AI will fundamentally alter lease abstraction practices that have been in place
for decades says Rick Zelinsky, Tango's SVP of Products. Through the
incorporation of AI we will see two significant impacts. First, organizations will
slowly and methodically leverage AI to extract and summarize key lease
provisions such as legal responsibilities and rights granted within the lease
instead of using attorney's and paralegals to interpret legal language. Second,
organizations will re-think what information is actually abstracted in the first
place – if information can be better retrieved, "just-in-time" there will be less
incentive to abstract as much information at the onset.
