Lease abstraction is a tedious process simply because not all leases are straightforward. CRE companies have been struggling to find ways to organize and manage their unstructured lease agreements. But lately, the use of artificial intelligence (AI) to abstract leases has caught the attention of many companies. Lease abstraction through artificial intelligence is based on machine learning. Simply upload the lease and other related documents and the software will analyze the entire set of documents, and abstract all the required information, providing the desired output.
Here are some benefits of using artificial intelligence
- Helps save time up to 30-40% to extract relevant lease data
- Saves cost by reducing human in the process of lease abstraction
- Capable of reading leases and providing output in different languages
- Data can be easily migrated from the AI tool to any system of choice
- Lease data is stored in a central repository that can be easily accessed and updated
- Document tagging is automated, making it easier to help locate key lease terms
- Data abstracted is consistent
- Lease data output can be any desired format
While AI software has made significant improvements in the process of lease data abstraction, it is not completely error-proof and hence cannot function independently yet. To maintain the integrity of the data abstracted, a human audit is still required. But at the end of the day, any process that makes abstracting leases quicker and easier will be a great value add.