How AI Address Contract Challenges During LIBOR Transition

The transition from LIBOR to alternative reference rates presents numerous challenges, particularly when it comes to renegotiating and operationalizing fallback language for both existing and new contracts. Although uncertainty remains among market participants and industry guidance continues to evolve, adopting a "wait-and-see" attitude before amending contracts is not considered wise. Financial institutions should consider acting now to develop a solution that supports the use of appropriate contract language in preparation for the permanent discontinuation of LIBOR. This article looks at why financial institutions should consider acting now to develop a solution that supports the use of appropriate contract language in preparation for the permanent discontinuation of LIBOR. In the world of finance, there is one number that likely matters more than any other.