Legal AI Company Legora Says Internal NDA Review Capacity Share Dropped from Approximately 20% to Below 1%
An OpenAI case study on Legora describes how the company's legal team extracted a review playbook from historical contracts, using AI to perform an initial screening of incoming NDAs and flagging terms that exceed acceptable parameters. The General Counsel estimates this process reduced the time spent reviewing NDAs from approximately 20% of the team's capacity to under 1%. The article also covers the engineering team's use of coding agents to explore multiple solutions in parallel. All data are self-reported by the company, with no independent verification.
A structural dilemma for legal teams is that there is never enough time, leading to high-value work that should have been completed simply not getting done. Max Junestrand, co-founder and CEO of Stockholm-based Swedish legal AI company Legora, cited this as the company's starting point in a case study released by OpenAI: junior lawyers were asked to review an overwhelming number of contracts overnight, able to focus on only a small fraction, while the rest were either skipped or handled roughly.
Legora's legal team designed a specific mechanism for reviewing NDAs (Non-Disclosure Agreements). Emma Kadri Bergström, the General Counsel, explained that her team first analyzed all NDAs the company had historically signed to extract a review playbook defining which term parameters fall within acceptable ranges. When new NDAs arrive, an AI agent performs an initial screening based on this playbook, flagging terms that exceed acceptable parameters for lawyers to make final judgments. Bergström estimated that before this workflow was introduced, reviewing these tedious documents consumed about 20% of the legal team's capacity; now, that figure has dropped to below 1%.
The key to this mechanism is not that AI replaces lawyers, but that it changes the scope of the review. With limited capacity, teams could only deeply review the most critical few contracts, skipping or quickly scanning the rest. The AI's initial screening allows a large volume of files that would previously have gone unexamined to be processed, thereby expanding the exposure of risk clauses. Alex Fortescue-Webb, Global Head of Legal Engineering at Legora, used due diligence as an example: traditional reviews are constrained by time and cost, forcing teams to concentrate on the most valuable contracts; the Tabular Review workflow can analyze thousands of contracts across multiple questions in minutes, allowing lawyers to apply detailed scrutiny to a much broader range.