A Two-Stage Architecture for NDA Analysis: LLM-based Segmentation and Transformer-based Clause Classification

Abstract

In business-to-business relations, it is common to establish NonDisclosure Agreements (NDAs). However, these documents exhibit significant variation in format, structure, and writing style, making manual analysis slow and error-prone. We propose an architecture based on LLMs to automate the segmentation and clauses classification within these contracts. We employed two models: LLaMA-3.1-8B-Instruct for NDA segmentation (clause extraction) and a fine-tuned Legal-Roberta-Large for clause classification. In the segmentation task, we achieved a ROUGE F1 of 0.95 +/- 0.0036; for classification, we obtained a weighted F1 of 0.85, demonstrating the feasibility and precision of the approach.