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Evaluating a Summarization Feature Before Release

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Evaluating a Summarization Feature Before Release

A legal operations team wants a feature that summarizes 40-page vendor contracts into a one-page brief covering parties, term, termination rights, liability caps, and governing law. A prototype produces fluent briefs, but in a review of 60 contracts, 9 briefs omitted the liability cap entirely and 4 stated a termination notice period that did not match the contract. The team lead argues the prototype is '90% good' and should ship with a disclaimer. The contracts are high value; a missed liability cap has caused disputes before. Reviewers currently read every contract in full, taking 90 minutes each.

1. Is '90% good' an adequate framing? Evaluate the prototype against the actual use.

Read the worked answer

No. A single aggregate score hides the failures that matter.

Breakdown of the 60-contract review:

  • 9 of 60 (15%) omitted the liability cap. That is a required field, not a nice-to-have. An omission is silent: the brief looks complete, so a reviewer who trusts it will not know to look.
  • 4 of 60 (about 7%) stated a wrong notice period. This is worse than omission because it is confidently wrong and invites reliance.
  • The remaining briefs may be fine, but the two defect classes above are precisely the ones that cause disputes.

Judgement: '90% good' averages a harmless formatting quirk with a missed liability cap. The correct framing is per-field recall on required fields and factual accuracy on extracted values. A feature that silently drops a required field at 15% is not shippable as a substitute for reading, regardless of fluency.

Also note the baseline: reviewers spend 90 minutes per contract. The feature only creates value if it reduces that time without increasing missed-cap risk.

2. Propose a measurement plan and a release decision rule.

Read the worked answer

Measurement plan:

  1. Build a labeled evaluation set of at least 100 contracts, each annotated by a lawyer with the five required fields and their exact values. Include contracts with unusual liability clauses and short notice periods, since those are where extraction fails.
  2. Score per field, not overall: presence recall (was the field found when present?), value accuracy (does the stated value match?), and hallucination rate (fields stated that are not in the contract).
  3. Score the brief as a whole for any statement not supported by the contract, since fluent unsupported text is the main risk.
  4. Run the evaluation on a held-out set after any prompt or model change; do not tune and report on the same contracts.

Release decision rule:

  • Presence recall on liability cap and termination rights must be at or above 98%, with zero confident wrong values tolerated above 1%.
  • Any contract where the model cannot find a required field must say so explicitly rather than omitting it silently.
  • Ship first as a draft that reviewers must confirm field by field, and only remove the full read for contract types that clear the bar across two consecutive evaluation rounds.

A disclaimer does not substitute for these thresholds, because the harm is missed information, not offense.