The world is changing rapidly, and this change is assisted and guided by advanced technology. This advance in technology also involves a shift towards artificial intelligence. Artificial intelligence plays a vital role in almost every sector.
Most importantly, today, it has become the perfect platform for everything and anything. Like any other sector, Automated Lease Abstraction has provided a new dynamic to the industrial sector.
Today, abstraction has become easy yet reliable due to the best usage of artificial intelligence and has improved the housing industry’s workings to a great extent.
What is lease abstraction?
Lease abstraction is a method of substantial document review made for the real estate sector.
Automated Lease Abstraction is built on efficient technologies, including optical character recognition (OCR), machine learning (ML), and natural language processing (NLP), to automate the signature capture and, thereby, extract relevant data elements from the documents.
Importance of artificial intelligence in lease abstraction
With artificial intelligence usage, the lease abstract method became more advanced, as the document is easier to review. This helps the contractor and the significant party understand the terms better too.
Volume: Artificial intelligence will help extract prominent clauses and obligations from any agreement, which can be hundreds or thousands of pages long. Finding something important is tedious and often becomes a complex task to extract the same manually. Therefore artificial intelligence will help in the lease abstraction process.
Most landlords, property managers, banks, or other companies may find difficulties managing an extensive number of portfolio lease agreements and the right way to process them.
However, with the artificial intelligence lease abstraction’s help, one can abstract an incredible amount of valuable data, which will get reviewed and understood both in physical and digital formats.
Diversity: Different agreements often vary in different ways, including clauses, obligations, content. Similarly, the wording used for the same term can be pretty different across the jurisdictions or maybe even in firms.
This causes the need for more straightforward regulatory requirements that automated lease abstraction methods can easily meet. The automated approach often combines with artificial intelligence to abstract the essential clauses from the diversity of words.
Accuracy: The lease abstraction of contract, which is reviewed and the data extraction performed manually, has a higher potential of the risk for several kinds of mistakes. Therefore with the help of artificial intelligence, accuracy can be achieved.
Different AI technology involved in Lease Abstraction are-
This method is significantly based on the advanced Artificial Intelligence algorithms that involve both the major training phase of the algorithm and an evaluation phase. They are-
Scanning of the document scanning– The agreement is scanned through various AI-assisted tools. The agreement then gets converted into Word documents, pdf documents, or readable HTML.
Phase involved in training: With the help of the assisted AI technology, the lease abstraction software gets major training to understand and review sets of agreements, which are valid and reliable.
Self-learning phase: The AI will help in new learning with its algorithm, which is another major feature of this method.
Evaluation: The evaluation will be done very well with zero mistakes, which is yet another prominent feature.
Execution: After the training and the evaluation phases are completed, the AI will automatically help in the lease abstraction and identify several selected clauses in the agreements and later review them accurately.
Integration: This is the most advanced AI contribution, where all the extracted data directly and automatically flows into a major management system, which makes it more readily available for the future.
Today, the biggest issue for the commercial real estate industries is the cumbersome nature of viewing the leases, which are filled with large volumes of explained and well-detailed information. This makes it challenging to review.
Manual processes often cause human error and risk of inaccuracy. So with the help of AI-powered methods of Lease Abstraction, one can get the most effective solution for a time-saving and innovative way of reviewing and managing the lease.
This will help the businesses inside the sector and contribute to the companies outside the real estate industry. The AI-assisted tools speed up the process and improve the data entry and extraction methods.
Therefore, this has become the quickest yet easiest data extraction method for real estate industries. It has changed the way the business is done because it reduces the scope for errors. It is a genuinely revolutionary use of AI, and it is continuously improving, taking the industry to further heights.