Legal AI for Real Estate Transactions

New York Real Estate Journal recently published an article authored by Co-Chair of Olshan’s Real Estate Law practice Thomas Kearns entitled “Legal AI for Real Estate Transactions.” In the article, Tom examines how emerging AI tools are reshaping—yet not fully reinventing—the practice of commercial real estate law. Reflecting on his early efforts in the 1980s to build a department-wide form bank, Tom notes that while technology has advanced dramatically, the challenge of locating reliable precedent documents persists. As a member of Olshan’s AI Committee, Tom discusses the firm’s ongoing evaluation of legal AI platforms capable of scanning millions of pages of agreements to identify issues, surface precedent language and assist with drafting. He highlights two recent tests: one in which publicly available AI engines struggled to generate an accurate indemnification clause under New York law, and another in which a curated AI tool successfully analyzed a complex LLC agreement against an internal checklist. Tom emphasizes that carefully curated “golden standard” document sets, many rooted in the form databank he created decades ago, will be critical to ensuring AI tools deliver accurate, practice-ready insights. He concludes with a caution to real estate professionals who strive to serve their clients in the most efficient way: “real estate professionals should be careful about using publicly available AI tools to answer complex legal questions. These tools can certainly be a help in some circumstances but so far, they are nowhere near being able to replace experienced lawyers on complex issues.”