In a first of its kind instance in South Korea’s legal industry, prominent law firm Shin & Kim has implemented the country’s first cloud-based internal AI service in collaboration with Korean startup Factagora and Microsoft Azure AI. This deployment marks a significant milestone, showcasing the practical potential of AI technologies in streamlining professional workflows and enhancing decision-making in the legal field.
Randy Baek, CEO of Factagora, stated, “Over the past two years, we have carefully examined the requirements for AI services at major law firms, studying how experts manage and utilize knowledge. Through this process, we discovered critical needs at the intersection of generative AI services and knowledge management systems. This finding enabled us to refine Factagora’s product in a more sophisticated manner.”
The newly introduced service is built on Factagora’s core technology, ‘FactBlock.’ Rather than simply scanning documents or listing information, this technology analyzes documents and user feedback to break down important information into small pieces of knowledge. It then organizes and manages these pieces systematically. This helps attorneys quickly understand and extract key insights from large volumes of legal documents. As a result, repetitive and time-consuming tasks are significantly reduced, allowing lawyers to focus on more critical aspects of their work.
Unlike conventional AI services on the market, Factagora emphasizes the systematic organization and management of internal corporate data. This approach enables the AI to provide more accurate and reliable answers, meeting the high standards demanded by professionals.
Attorneys at Shin & Kim have responded positively, reporting higher-quality AI-assisted answers in document review and data analysis thanks to this differentiated approach.
Following the service launch, Factagora and Shin & Kim conducted a survey among attorneys and identified the following key achievements: –
- Time Savings: 75% of respondents reported saving at least 20% of their work time, while 12.5% experienced savings of 50% or more. –
- High Satisfaction: Over 95% of participating attorneys expressed a willingness to continue using the AI service.
- Improved AI Quality: 70% of attorneys utilizing the FactBlock feature noted enhanced quality in the AI’s answers.
The service focuses on addressing the internal data management challenges often encountered when companies adopt AI. Large organizations such as law firms can use Factagora’s technology to manage and analyze internal documents and data securely, with minimal reliance on external platforms and reduced risk of data leakage.
The ‘FactBlock’ technology systematically processes data into units of knowledge, helping generative AI provide reliable results. For instance, in automated contract review, FactBlock structures key provisions and risk factors in contracts into organized knowledge, supplying attorneys with quick and accurate information.
In medical insurance claim verification, the technology processes claim data into FactBlocks, enabling insurers to swiftly detect inaccuracies and produce trustworthy verification results.
Factagora has also proven its capabilities in the finance sector, successfully conducting a testbed with OCBC Bank to structure ESG policy data and investment data for automatic generation of compliance reports. Because of its strong technology, Factagora is recognized by Gartner Research as one of the key startups driving innovation in the emerging category of “Disinformation Security”, demonstrating the company’s global market potential.
Having secured Pre-seed funding from Creative Ventures in Silicon Valley, Factagora plans to begin its official Seed investment round in January next year, aiming to accelerate technological development and global market entry.
Meanwhile, Shin & Kim is one of South Korea’s leading law firms, providing both domestic and international clients with comprehensive and specialized legal services. Factagora intends to continue its technological innovation and global market expansion, positioning itself as a trusted partner across various industries.
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