{"id":1004714839,"date":"2024-05-29T17:53:51","date_gmt":"2024-05-30T01:53:51","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004714839"},"modified":"2024-10-01T00:42:38","modified_gmt":"2024-10-01T08:42:38","slug":"cdo-stack-what-genai-can-unlock-in-lease-contracts","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/cdo-stack-what-genai-can-unlock-in-lease-contracts\/","title":{"rendered":"CDO Stack: What GenAI Can Unlock in Lease Contracts"},"content":{"rendered":"\n

I\u2019m back again to talk about Generative AI, but this time I\u2019m focusing on its application to leases and other contracts. I know I\u2019ve covered this topic at a high level as I outlined the potential use cases of GenAI in our industry in the October \u201923 edition, but then it was more an emerging or theoretical use case. In the months since, I\u2019ve seen tools and pilots, and I\u2019m here to report that I\u2019m blown away by what I\u2019ve seen. <\/p>\n\n\n\n

I was on a call the other day, and I described this generation of tools and capabilities as \u201cnot your father\u2019s machine learning-based lease abstraction tools.\u201d I always thought those were promising, but I know that several clients either had negative experiences or found that the complicated logic embedded in lease language for things like start date simply defeated the ability of existing tools. If this describes you, and you rely on manual in-house lease (or other contract) abstraction, please read on (well, please read on in either case).<\/p>\n\n\n\n

\n
READ THE DIGEST<\/strong><\/a><\/div>\n<\/div>\n\n\n\n

With respect to the generation of tools that relied on machine learning contract abstraction tools, I\u2019d argue they are valuable and useful, even in the case outlined above in which contractual language required human reasoning. I\u2019m sorry to say this, but I have been at least a little disappointed in clients who piloted and then abandoned the machine learning generation of abstraction tools, mostly because of trust issues or \u201call or nothing\u201d thinking. In other words, if they didn\u2019t work the first time or for everything, they were discarded as not being valuable. But those companies who stuck with the \u201clearning\u201d part of machine learning, who took the time to \u201cteach\u201d the application, generally found great results in productivity in the historically laborious and often error-filled process of lease abstraction.<\/p>\n\n\n\n

\"Man
Image by sorbetto\/iStockphoto.com<\/em><\/figcaption><\/figure>\n\n\n\n

Speaking of history, let\u2019s take a quick romp down memory lane with respect to lease abstraction and administration. It wasn\u2019t all that long ago that occupiers and landlords kept physical (yes, paper) copies of lease documents and they were regularly accessed and read. This was not much more than 20 years ago. Then scanning happened, but scans were basically just a picture. Then indexing, so you could quickly find the place in the picture that was of interest. Then OCR that enabled searching (which seemed like quite a big deal at the time). Then the ML-based abstraction tools (all of the above happened in roughly a decade). And now GenAI-based abstraction and natural language query tools to access the full details of one or many leases (or, really, any contract that\u2019s accessible).<\/p>\n\n\n

\n
\"John
John D’Angelo<\/figcaption><\/figure><\/div>\n\n\n

So, finally, we\u2019re at the current generation of tools and, from what I\u2019ve seen, it\u2019s not just the next step improvement in the series, it\u2019s a new thing. Both in the tool\u2019s ability to quickly \u201cread\u201d and abstract a huge quantity of documents (getting it right, pretty much out of the box) and in being able to ask fairly nuanced questions in plain English and getting the answer back almost immediately. All in secure environments, so all of that sensitive contractual data stays private. We have clients with tens of thousands of active leases and many multiples of that number of historical leases. Imagine being able to unlock the rich information that\u2019s locked away in all of those leases, the information that\u2019s never abstracted because it\u2019s not commonly used and it would be too laborious to do so. That\u2019s what\u2019s now both possible and available.<\/p>\n\n\n\n

At first, I thought of GenAI as largely an efficiency technology, and that\u2019s certainly the case with both the abstraction and query parts of its application to leases (and other contracts). But I\u2019m now seeing the innovation and effectiveness applications. We\u2019ve actually seen side-by-side cases in which the GenAI tool gets the abstraction right and where a well-trained, highly experienced human makes a mistake (remember, AI never gets bored or has a bad day or lapse in concentration). And on the innovation side, being able to query a large number of contracts for specific terms or examples of language previously agreed upon with a specific company, in a specific property or geography, etc., makes practical what was previously either impractical or only possible through enterprise knowledge.<\/p>\n\n\n\n

The bottom line\u2014I\u2019ve seen the future, and it\u2019s here today and it\u2019s very promising.<\/p>\n\n\n\n

John D\u2019Angelo<\/a> is a managing director with Deloitte Consulting LLP & the real estate solutions leader, designing solutions to address client challenges and push the industry forward. With over 30 years of experience as a management consultant to the global real estate industry, John has helped some of the biggest names in real estate leverage technology and use data to optimize and transform their operations.<\/em><\/p>\n\n\n\n

Read the June 2024 issue of CPE.<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

The application can do more than add efficiency, according to Deloitte\u2019s John D\u2019Angelo. <\/p>\n","protected":false},"author":1119,"featured_media":1004714840,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[39191,1521],"tags":[32782],"class_list":["post-1004714839","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-rc-cfo-corner","category-digital","tag-deloitte"],"acf":[],"yoast_head":"\nCDO Stack: What GenAI Can Unlock in Lease Contracts - Commercial Property Executive<\/title>\n<meta name=\"description\" content=\"Deloitte\u2019s John D'Angelo is back again to talk about Generative AI, but this time focusing on its application to leases and other contracts.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/cdo-stack-what-genai-can-unlock-in-lease-contracts\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"CDO Stack: What GenAI Can Unlock in Lease Contracts\" \/>\n<meta property=\"og:description\" content=\"Deloitte\u2019s John D'Angelo is back again to talk about Generative AI, but this time focusing on its application to leases and other contracts.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/cdo-stack-what-genai-can-unlock-in-lease-contracts\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2024-05-30T01:53:51+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-10-01T08:42:38+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/05\/ManVsRobot_iStock-2147550816.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"900\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"John D'Angelo\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/cdo-stack-what-genai-can-unlock-in-lease-contracts\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/cdo-stack-what-genai-can-unlock-in-lease-contracts\/\",\"name\":\"CDO Stack: What GenAI Can Unlock in Lease Contracts - Commercial Property Executive\",\"isPartOf\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/cdo-stack-what-genai-can-unlock-in-lease-contracts\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/cdo-stack-what-genai-can-unlock-in-lease-contracts\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/05\/ManVsRobot_iStock-2147550816.jpg\",\"datePublished\":\"2024-05-30T01:53:51+00:00\",\"dateModified\":\"2024-10-01T08:42:38+00:00\",\"author\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/64705160706d96e1f3ff327abfd8fb13\"},\"description\":\"Deloitte\u2019s John D'Angelo is back again to talk about Generative AI, but this time focusing on its application to leases and other contracts.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/cdo-stack-what-genai-can-unlock-in-lease-contracts\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.commercialsearch.com\/news\/cdo-stack-what-genai-can-unlock-in-lease-contracts\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/cdo-stack-what-genai-can-unlock-in-lease-contracts\/#primaryimage\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/05\/ManVsRobot_iStock-2147550816.jpg\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/05\/ManVsRobot_iStock-2147550816.jpg\",\"width\":1200,\"height\":900,\"caption\":\"CDO Stack. Image by sorbetto\/iStockphoto.com\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/cdo-stack-what-genai-can-unlock-in-lease-contracts\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.commercialsearch.com\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"CDO Stack: What GenAI Can Unlock in Lease Contracts\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/\",\"name\":\"Commercial Property Executive\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.commercialsearch.com\/news\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/64705160706d96e1f3ff327abfd8fb13\",\"name\":\"John D'Angelo\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/5b1b698aadaf04e28f60fb086f2700479a642e4953d33fdc2515fb9e651f4907?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/5b1b698aadaf04e28f60fb086f2700479a642e4953d33fdc2515fb9e651f4907?s=96&d=mm&r=g\",\"caption\":\"John D'Angelo\"},\"url\":\"https:\/\/www.commercialsearch.com\/news\/author\/johndangelo\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"CDO Stack: What GenAI Can Unlock in Lease Contracts - Commercial Property Executive","description":"Deloitte\u2019s John D'Angelo is back again to talk about Generative AI, but this time focusing on its application to leases and other contracts.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.commercialsearch.com\/news\/cdo-stack-what-genai-can-unlock-in-lease-contracts\/","og_locale":"en_US","og_type":"article","og_title":"CDO Stack: What GenAI Can Unlock in Lease Contracts","og_description":"Deloitte\u2019s John D'Angelo is back again to talk about Generative AI, but this time focusing on its application to leases and other contracts.","og_url":"https:\/\/www.commercialsearch.com\/news\/cdo-stack-what-genai-can-unlock-in-lease-contracts\/","og_site_name":"Commercial Property Executive","article_publisher":"https:\/\/www.facebook.com\/CPExecutive","article_published_time":"2024-05-30T01:53:51+00:00","article_modified_time":"2024-10-01T08:42:38+00:00","og_image":[{"width":1200,"height":900,"url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/05\/ManVsRobot_iStock-2147550816.jpg","type":"image\/jpeg"}],"author":"John D'Angelo","twitter_card":"summary_large_image","twitter_creator":"@cpexecutive","twitter_site":"@cpexecutive","schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.commercialsearch.com\/news\/cdo-stack-what-genai-can-unlock-in-lease-contracts\/","url":"https:\/\/www.commercialsearch.com\/news\/cdo-stack-what-genai-can-unlock-in-lease-contracts\/","name":"CDO Stack: What GenAI Can Unlock in Lease Contracts - Commercial Property Executive","isPartOf":{"@id":"https:\/\/www.commercialsearch.com\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.commercialsearch.com\/news\/cdo-stack-what-genai-can-unlock-in-lease-contracts\/#primaryimage"},"image":{"@id":"https:\/\/www.commercialsearch.com\/news\/cdo-stack-what-genai-can-unlock-in-lease-contracts\/#primaryimage"},"thumbnailUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/05\/ManVsRobot_iStock-2147550816.jpg","datePublished":"2024-05-30T01:53:51+00:00","dateModified":"2024-10-01T08:42:38+00:00","author":{"@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/64705160706d96e1f3ff327abfd8fb13"},"description":"Deloitte\u2019s John D'Angelo is back again to talk about Generative AI, but this time focusing on its application to leases and other contracts.","breadcrumb":{"@id":"https:\/\/www.commercialsearch.com\/news\/cdo-stack-what-genai-can-unlock-in-lease-contracts\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.commercialsearch.com\/news\/cdo-stack-what-genai-can-unlock-in-lease-contracts\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/cdo-stack-what-genai-can-unlock-in-lease-contracts\/#primaryimage","url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/05\/ManVsRobot_iStock-2147550816.jpg","contentUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/05\/ManVsRobot_iStock-2147550816.jpg","width":1200,"height":900,"caption":"CDO Stack. Image by sorbetto\/iStockphoto.com"},{"@type":"BreadcrumbList","@id":"https:\/\/www.commercialsearch.com\/news\/cdo-stack-what-genai-can-unlock-in-lease-contracts\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.commercialsearch.com\/news\/"},{"@type":"ListItem","position":2,"name":"CDO Stack: What GenAI Can Unlock in Lease Contracts"}]},{"@type":"WebSite","@id":"https:\/\/www.commercialsearch.com\/news\/#website","url":"https:\/\/www.commercialsearch.com\/news\/","name":"Commercial Property Executive","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.commercialsearch.com\/news\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/64705160706d96e1f3ff327abfd8fb13","name":"John D'Angelo","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/5b1b698aadaf04e28f60fb086f2700479a642e4953d33fdc2515fb9e651f4907?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/5b1b698aadaf04e28f60fb086f2700479a642e4953d33fdc2515fb9e651f4907?s=96&d=mm&r=g","caption":"John D'Angelo"},"url":"https:\/\/www.commercialsearch.com\/news\/author\/johndangelo\/"}]}},"jetpack_featured_media_url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/05\/ManVsRobot_iStock-2147550816.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004714839","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/users\/1119"}],"replies":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/comments?post=1004714839"}],"version-history":[{"count":9,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004714839\/revisions"}],"predecessor-version":[{"id":1004730913,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004714839\/revisions\/1004730913"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media\/1004714840"}],"wp:attachment":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media?parent=1004714839"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/categories?post=1004714839"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/tags?post=1004714839"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}