Ropes & Gray Automates Transactional Due Diligence with OpenAI

Ropes & Gray has developed a proprietary tool in collaboration with OpenAI to automate the initial phase of transactional due diligence. The firm aims to produce detailed reports in a matter of hours rather than weeks, while still ensuring comprehensive review by its attorneys.

Stated Goal: Reports in Hours Rather Than Weeks

Ropes & Gray aims for its artificial intelligence to generate a detailed due diligence report on issues within hours, where it previously took several weeks. The firm notes that it has been able to address certain client inquiries significantly faster thanks to this internal solution combined with GPT-6 Astra. During this process, attorneys validate intermediate summaries and reference documents before delivering the results to the client. The tool's outputs are compared with reports drafted by attorneys to adjust the format and structure of the report.

What the Tool Automates in Due Diligence

The AI tool conducts an initial pass by scanning thousands of pages, identifying relevant documents, and automatically grouping them by themes and issues. It generates summaries and a comprehensive report in Ropes & Gray's specific format. The tool inventories and categorizes a data room, allowing for an examination of all relationships rather than isolated documents. The workflow consistently results in summaries and a deliverable that conforms to the firm's format.

Role of Attorneys: Total Control and Common Standard

Attorneys can verify the grouping and categorization to avoid omissions. The tool relies on a consistent query and framework that replicate the steps followed by the team, from initial reviews to higher-level assessments. Ropes & Gray presents the quality produced as comparable to that of a competent junior to mid-level associate for an initial pass. Josh Lichtenstein emphasizes that everything must be reviewed and fully endorsed by the attorneys, with the tool designed to facilitate the review of summaries and documents. Howard Glazer highlights that the expected value lies in content-based judgment, not merely in the reading of contracts.

How the Firm Developed the System

Ropes & Gray, in partnership with OpenAI, designed a solution specifically aimed at transactional due diligence, initially focusing on major commercial contracts. During workshops, attorneys compared the results obtained during the tool's testing with final reports from previously handled cases, which allowed for adjustments to the report's format and structure. The firm continues to evolve this proprietary tool with OpenAI to benefit a broader audience of clients.

Josh Lichtenstein Bets on AI to Accelerate Legal Analysis

Josh Lichtenstein believes that artificial intelligence is a crucial asset for gaining speed without compromising quality, and he indicates that he uses it in many areas of his daily life, whether it's searching for shoes or inventing games for his children, to evaluate its strengths and limitations. He considers that spotting errors and understanding how to correct them constitutes valuable learning. Howard Glazer emphasizes the priority given to clients in the design of tools, believing that the opportunities offered by AI only make sense if they benefit clients. Today, AI is already assisting in legal due diligence. Glazer anticipates a next step where AI will help build collective knowledge within the firm. Ropes & Gray has 340 partners and 1,500 attorneys, and sees value in providing access to everyone's knowledge, from client meetings to past projects, to better solve client problems. Glazer asserts that the goal is not just to save time or money, but to directly create value through AI tools. This dynamic occurs in a context where transactional due diligence requires quickly processing large volumes of documents, conducting pre-acquisition investigations, detecting risks and liabilities, identifying patterns, and preparing offers within tight deadlines. The firm is presented as a pioneer of AI in the legal sector.