Case Study
IQ.AI by FTI Technology Provides Rapid, Insightful Contract Review in Airline Bankruptcy
When an international airline filed for bankruptcy, FTI Technology’s Contract Solutions experts were engaged to apply IQ.AI for Contracts to quickly review the company’s contract portfolio in support of filing deadlines and notice obligations. The team delivered a rigorous review of more than 20,000 contracts under compressed timelines and provided follow-on analysis in support of strategic decision making throughout the bankruptcy.
Situation
As part of its bankruptcy filing, which was being led by FTI Consulting’s Corporate Finance & Restructuring team, the company requested support with review of its contracts to satisfy court-imposed requirements and notice obligations. The initial volume was expected to be approximately 1,000 contracts.
As the project unfolded, the scale increased to become a review of more than 20,000 contracts, 90% of them in foreign languages. Despite the increase in volume, bankruptcy filing deadlines held firm, leaving the team with approximately one month to review all contracts for relevance to the bankruptcy and determine other implications that would need to be addressed with third parties.
Our Role
Given the tight timeline for completing review, the project demanded a highly efficient approach. The team recognized the opportunity to apply IQ.AI, a proprietary suite of expert-led artificial intelligence solutions. This included IQ.AI for Contracts, an AI-based approach to quickly query large contract populations, delivering actionable, structured data to help answer questions and make informed business decisions.
The team designed a methodology to extract details needed to prepare a court filing, and to support the client with assumption and rejection decisions, helping the legal and bankruptcy team determine whether to keep a contract or eliminate it as part of the bankruptcy.
Review also provided insights into the client’s potential risks and damages for terminating contracts, supporting the company’s overall financial strategy.
The combined solution of IQ.AI and FTI Technology’s experts included:
- Development of custom AI prompts to query against the client’s contracts, uncovering key insights within days and allowing the client to begin critical analysis work prior to the final filing deliverable.
- Workflow prioritization through strategic prompting, identifying critical contracts and data points for review based on business importance.
- Use of large language models to extract foreign language from contracts and translate to English, leading to higher accuracy outputs and enabling client teams to access data in their preferred language.
- A large team of multi-lingual reviewers to validate contract extractions and perform additional substantive analysis.
- Flexibility within IQ.AI to refine prompts based on distinct attributes of the client’s geography, industry and contracting, and to differentiate client versus counterparty rights and obligations.
- Access to multiple large language models within the IQ.AI interface, allowing the team to assess and select the best model option for each task.
Our Impact
- Quickly scaled IQ.AI to enable the client to meet its deadline for contract review to comply with bankruptcy requirements.
- Helped to reduce cost, prioritize contract review and support strategic insight by combining AI with an experienced review team and contract solutions experts.
- Identified target contract data points to answer key questions about priority contracts and conducted additional strategic reviews for the client through the use of advanced analytics and IQ.AI for Contracts.