When a global healthcare company set out to accelerate its acquisition program, the legal challenge was immediate: how to understand thousands of inherited contracts, quickly and accurately, without the cost and delay of traditional review.
The question is familiar to any legal team that has been through M&A. The contracts exist. The risk sits inside them. Manual review is slow, expensive and inconsistent at scale. The company needed a better approach — and found one in Factor's AI-powered contract review capability.
Earning the Right to Move Fast
The client operates in a highly regulated environment and took a considered approach to AI adoption. Before any documents were reviewed, the team worked through a rigorous governance process: approval for Factor's AI contract review tool, security reviews, data processing terms and the creation of a dedicated EU-hosted instance of the platform to meet the client's specific regulatory requirements.
The investment in groundwork paid off. Once the framework was in place, the team could move at pace.
99.6% Accuracy Across 2,000 Documents
The client began with a cautious position, requiring full human review of every AI output. The results quickly shifted that stance.
Factor's AI contract review tool processed 2,000 documents across 55 structured data fields. Final output accuracy came in at 99.6%. Thirty-three fields achieved 100%, earning approval for straight pass-through with no further human review. A further 16 came in at 99% or above. The lowest score across all fields was 98.3%.
Reviewer throughput doubled from 8 to 15 contracts per day, an 88% capacity increase. The client moved from blanket human review to targeted, risk-based sampling. The accuracy of the tool had earned a new, more efficient governance framework.
Repeatable & Scalable
A second M&A project followed with an entirely new stakeholder group, covering a major new acquisition and 2,750 further documents. The company's legal function now has a proven, repeatable capability for M&A contract review that scales with each new deal.
For a business taking an increasingly aggressive acquisition posture, that matters.
The Broader Opportunity
The capability demonstrated here is not limited to M&A. Any large-scale document review challenge — regulatory change, portfolio intelligence, obligation extraction, remediation — follows the same pattern: a large, unstructured document population, a need for speed and accuracy, and a legal team that cannot get there through manual review alone.
The other lesson worth noting: the blocker is rarely the project itself. For many organizations it is the governance groundwork — AI approvals, security reviews, data processing terms. Getting those in place before an urgent need arises is the single most valuable thing a legal team can do to be ready when the moment comes.
Find out more about Factor's AI-integrated legal services.
Curious how this might work for your team?
