After 47 years of partnership, the United Kingdom has left the European Union on January 31, 2020 and is now in an 11-month transition period ending 31 December 2020. During this period the UK effectively remains in the EU’s customs union and single market and continues to obey EU rules. Now that the deed is done, the focus now lies on the practical implications for the business world. What consequences Brexit will have for companies located in the UK and with activities in the EU and the other way around will become clear in the following weeks. In case the UK and the EU do not reach a deal, the impact on those companies will be significant, both from a contractual perspective as from a regulatory perspective (for those companies active in a regulated industry).
The groundbreaking AI tool, used within EY network worldwide, allows for quick and efficient review of large amounts of data. This innovative piece of AI technology uses machine learning and pattern recognition in order to read and understand documents and agreements. It learns by example whilst exposing patterns in language. The tool has proven to be extremely useful in scanning Brexit’s legal documentation as, within instants, it enables insight and understanding of the clauses, allowing to quickly and easily identify:
- Governing law and the competent court
- Nationality of the contract parties
- Geographical impact
- Clauses with references to EU legislation
Moreover, aside from being able to quickly identify the above and present it in user friendly reports (in Word or PDF), the technology can scan and identify any other clause which has been selected to be relevant (i.e. non-complete, termination, exclusivity. MAC clause, etc.)
Results of this AI scan are the starting point for further in-depth legal review of certain agreements and/or where needed, implementation of remedial actions as well as further identification of other anomalies or legal issues.
The importance of having the necessary information prepared and presented in a clear, organized and well-structured manner cannot be stressed enough as these details will became a crucial factor during the (re)negotiation of UK-related contracts. A plausible scenario is the changed regulations and standards, in combination with higher logistics costs can lead to a reevaluation of the supply structures which consequently will result in the redrafting of thousands of legal documents related to every aspect of the business.
As the Brexit has undoubtably brought more legal and regulatory complexity in business and legal relations, it is now clear that a careful analysis of Brexit’s potential impact in these fields will be required. From a strategic and operational point of view it would be beneficial to make use of the AI assisted scan in order to analyze the relevant documents and secure effective further operational activity, ensuring the validity of all the agreements in place. Our experience learn that companies need up to 75% less time to perform such a review. The subsequent cost savings could be considerable as well.
Please feel free to reach out to our lawyers in case you would like to learn more about this offering.