Why Recursive Character Splitting Fails for Legal Clauses
The default chunking logic in most AI orchestration frameworks works well for blog posts and general knowledge bases. But it's a disaster for legal contracts, where a single clause can span 3 pages and reference definitions from 50 pages earlier.
In this deep-dive, we explore why semantic chunking outperforms naive splitting for legal documents, and share our custom "clause-aware" algorithm that increased retrieval accuracy by 47% in a recent law firm deployment. We cover how clause boundaries, cross-reference preservation, and definition-linking transform retrieval quality from "generally correct" to "courtroom-ready."
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