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arXiv · 2506.01063

AI4Contracts: LLM & RAG-Powered Encoding of Financial Derivative Contracts

Maruf Ahmed Mridul·Ian Sloyan·Aparna Gupta·Oshani Seneviratne
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Abstract

Large Language Models (LLMs) and Retrieval-Augmented Generation (RAG) are reshaping how AI systems extract and organize information from unstructured text. A key challenge is designing AI methods that can incrementally extract, structure, and validate information while preserving hierarchical and contextual relationships. We introduce CDMizer, a template-driven, LLM, and RAG-based framework for structured text transformation. By leveraging depth-based retrieval and hierarchical generation, CDMizer ensures a controlled, modular process that aligns generated outputs with predefined schema. Its template-driven approach guarantees syntactic correctness, schema adherence, and improved scalability, addressing key limitations of direct generation methods. Additionally, we propose an LLM-powered evaluation framework to assess the completeness and accuracy of structured representations. Demonstrated in the transformation of Over-the-Counter (OTC) financial derivative contracts into the Common Domain Model (CDM), CDMizer establishes a scalable foundation for AI-driven document understanding, structured synthesis, and automated validation in broader contexts.

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Maruf Ahmed Mridul, Ian Sloyan, Aparna Gupta, Oshani Seneviratne. 2025-06-01. AI4Contracts: LLM & RAG-Powered Encoding of Financial Derivative Contracts. https://arxiv.org/abs/2506.01063

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