One of the biggest challenges in the commercial real estate sector has always been the cumbersome nature of leases. Commercial leases are filled with large volumes of detailed information and finding one specific point can take hours. The process of extracting data and manually entering it into spreadsheets can take even longer and carries a high risk of human error.
Using an AI-powered solution for lease abstraction, however, has proven to be one of the most effective leaps forward in time-saving innovations. Over the past several years, LEVERTON, an MRI Software company, has developed technology that uses artificial intelligence to improve the lease abstraction process.
If you’ve ever had to read through multiple commercial leases and compare terms, conditions and other information, you know that this process is tedious and time consuming. Manual tasks like moving data from several different contracts into one central location don’t just take up valuable time, they leave you more exposed to human error. Even if you’re able to identify those errors, going back and fixing them can take just as long.
Taken from LEVERTON’s own studies, skilled employees across the workforce have reported losing up to ten hours a week on the manual entry of data. Human error is the leading cause of accounting mistakes, and the average financial impact that poor data has on a business is estimated to be around $9.7 million per year.
With statistics like that, it’s very clear that businesses inside and outside the real estate industry are in dire need of a tool that speeds up the process and improves the accuracy of the data entered and extracted. Paper-based documentation, manual data extraction, and continuous data re-entry make for a more complicated, time-consuming process that leads to limited contract analysis, data inaccuracies, and no audit trail.
Quick and easy data extraction is possible through AI-powered solutions. Through optical character recognition (OCR) software and developing deep learning techniques, LEVERTON has harnessed technology that makes lease abstraction much easier. 73% of the respondents from LEVERTON’s survey said they have already received measurable value from big data and AI initiatives.
AI-powered solutions that have been developed in the past several years give you the ability to digitize documents, structure data in a centralized repository, automate real-time data updates, and utilize predictive analytics that save category information from previously uploaded leases. With LEVERTON’s AI solutions, pulling data from your leases can be automated. The process looks something like this:
1) Organization – OCR technology will convert your selected document into texts that are machine readable.
2) Extract – AI will pull key data from the documents and link each point to source information. This functionality means that the AI is learning from every lease that comes across the platform. It understands the terms, and it increases accuracy over time.
3) Analyze – Once steps one and two are complete, you’ll be able to access the platform and explore the data from different angles. You’ll be able to search for important parameters. You’ll also have any important dates pulled from the lease added onto a calendar feature, or you can opt to create your own custom calendar.
4) Integrate – Exporting the data will allow users to consume it with the desired target system.
Lease abstraction, if done manually, can be a grueling process. But with Lease Intelligence from LEVERTON, you can cut down on the time it takes to manage your leases and regain confidence in your data.