Companies today are faced with the challenge of implementing increasingly complex regulatory requirements efficiently, securely and comprehensibly. At the same time, there is a lack of time, resources and scalable solutions. This client case shows how KPMG, together with its clients, is tackling precisely this issue: through the intelligent combination of sound legal expertise and artificial intelligence. AI helps to analyse large volumes of legal information in a structured manner, identify risks at an early stage and significantly accelerate decision-making processes. The result is leaner processes, higher quality in the application of the law and greater certainty in dealing with regulatory complexity. This is how we create measurable added value - and make companies fit for the requirements of today and tomorrow.
MAKE LEGAL AI RELIABLE
Legal AI
Scans contracts specifically for risks
One third
reduced checking effort per contract
1 solution
with flexibly customisable test criteria - for legal and internal requirements
Client
Legal department of a bank
Sector
Financial Services
Project objective
Efficient and legally compliant review of a large number of contracts for compliance with new regulatory requirements.
Technology
Artificial intelligence, low-code, data science, legal tech
Video: Carolin Kothe shows how KPMG intelligently combines legal expertise and AI with clients.
The path to customer transformation
- The task
- Our approach
- The added value
Ensuring compliance with high contract volumes
The legal department of a bank was faced with the challenge of checking hundreds of existing contracts for compliance with new regulatory requirements within a short space of time. A manual check was time-consuming, resource-intensive and hardly scalable. They were looking for a solution that combined speed, quality and legal certainty.
AI-supported contract review with clear rules
KPMG developed an AI-based solution that automatically searches and prioritises contracts for risks. This is based on clearly defined review specifications - both legal requirements and internal company guidelines. The system identifies relevant text passages, evaluates risks in a structured manner and enables well-founded prioritisation. Quality was ensured through regular spot checks and the comparison between AI results and legal assessments. The lawyers were actively involved in the development, testing and use of the system right from the start.
More time for the essentials
The AI-supported preliminary review enabled lawyers to significantly reduce the time required per contract - from around six hours to around four hours. This freed up more time for contract negotiations and strategic advice. At the same time, the client gained certainty that its contracts were compliant with regulations. The result was so convincing that the concept was transferred to other Group companies.
How we make the difference
By bringing together legal expertise, data and artificial intelligence, we create solutions that efficiently fulfil regulatory requirements - and at the same time put the focus back on strategic value creation.
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Integrating Contract Compliance AI specifically into existing processes
The successful implementation of AI-supported contract compliance does not depend solely on the technology. It is crucial that review criteria, responsibilities and quality controls are clearly defined. Particularly in the financial services sector, results must remain traceable and be integrated into existing governance, risk and compliance processes.
Contract Compliance AI can help legal departments to structure extensive contract portfolios more quickly and assess regulatory clauses in a more targeted manner. This creates a robust foundation for prioritising risks, identifying areas requiring adjustment and preparing decisions on a more informed basis.
Contract compliance with AI: from a standalone solution to an operational model
Contract compliance with AI delivers its greatest benefits when it is not viewed as an isolated tool. What matters is its integration into existing processes: from defining the validation logic, through technical assessment, to documenting the results.
These include, for example, requirements from internal guidelines, new regulatory requirements or contractual obligations towards service providers and business partners. AI can pre-check this information in a structured manner. The final assessment remains the responsibility of the relevant experts.
This is what sets our support apart
We support companies in setting up AI-assisted contract review effectively, both from a technical and organisational perspective. This includes defining relevant review criteria, involving legal and regulatory experts, and ensuring the quality of the results.
It is important to have a clear framework for responsibilities, traceability and ongoing development. In this way, Contract Compliance AI becomes a scalable building block for greater transparency, efficiency and security in contract management.
Contract Compliance AI as a building block for greater transparency
For financial institutions, this approach offers particular added value when high contract volumes, pressure from regulatory changes and limited resources converge. AI handles the structured preliminary review and helps to highlight relevant contract content more quickly.
The technical assessment remains where it belongs: with the responsible experts. Please feel free to contact us if you’d like to further develop your contract compliance using AI in a targeted manner.
We make the difference
By bringing together legal expertise, data and artificial intelligence, we create solutions that efficiently meet regulatory requirements – whilst refocusing attention on strategic value creation.
Frequently asked questions
Contract Compliance AI refers to the use of artificial intelligence for the structured analysis of contracts. The aim is to identify relevant clauses, risks and compliance deviations more quickly.
This approach is particularly relevant for extensive contract portfolios, such as service provider, outsourcing, customer, supplier or framework agreements. Data quality, the audit objective and subject-matter expertise are crucial.
No. AI can speed up preliminary analyses and highlight anomalies. The technical assessment, prioritisation and decision-making remain the responsibility of qualified experts.
We provide support in analysing the contract landscape, defining review rules, conducting AI-assisted analysis and integrating these into governance and control processes.