Contract data extraction is the process of converting unstructured contract text into structured data fields - counterparty, effective date, pricing, tiers, notice periods, and so on. It is the foundational step that makes downstream analytics, reconciliation, and alerting possible.
Extraction approaches
Rule-based extraction (regex, template matching) works for highly consistent contracts. AI-based extraction (language models) handles variation and bespoke language. Hybrid approaches - AI plus rules plus human review - deliver the best combination of accuracy and control.
The downstream dependency
Every capability above extraction - portfolio reporting, reconciliation, alerting, obligation tracking - depends on the extracted data. Extraction quality is the ceiling on the value the rest of the stack can deliver.
