Confirmation Document Validation Using RAG Relevance Scoring

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Solution Overview

Problem

The lack of transparency and accuracy in generating confirmation documents for trade activities leads to inefficiencies and inaccuracies, particularly in high-volume trading scenarios, where over 1.5 million documents are produced, and retroactive auditing reveals hundreds of thousands of improper documents.

Innovation Solution

A computer-implemented system and method assess the relevance and accuracy of confirmation documents by processing electronic information through a series of queries to models, utilizing a knowledge base, historical data, and dynamic weightage algorithms to generate a weighted relevance score, incorporating Retrieval-Augmented Generation (RAG) and prompt engineering techniques.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Measurement precision

If manual review and retroactive auditing of confirmation documents is performed, then accuracy and compliance can be verified, but time consumption and processing efficiency deteriorate significantly

Engineering Contradiction:

Improveaccuracy of confirmation documentsVSAvoidtime consumption for auditing

Core Design Contradiction:

Measurement precisionVSLoss of time

Solution Approach 1:

The system performs preliminary automated validation of confirmation documents at the time of generation, checking against disclosure requirements and trading conditions before the documents are finalized. This prevents the need for time-consuming retroactive auditing while maintaining high accuracy standards.

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

Manual auditing processes are replaced with automated computational systems that use machine learning models and rule-based engines to validate confirmation documents. This substitution dramatically reduces the time required for accuracy verification while maintaining or improving detection capability.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

2Reliability

If comprehensive disclosure information is included in confirmation documents, then compliance and accuracy improve, but document complexity and processing difficulty increase

Engineering Contradiction:

Improvecompliance of confirmation documentsVSAvoidcomplexity of confirmation document generation

Core Design Contradiction:

ReliabilityVSDevice complexity

Solution Approach 1:

The confirmation document generation process is divided into modular components: trading condition extraction, disclosure requirement matching, document template selection, and validation. Each module handles a specific aspect independently, making the overall complex process manageable and maintainable while ensuring comprehensive compliance.

Inventive Principle:

Principle #1Segmentation

Solution Approach 2:

An intermediary processing layer is introduced between the trading system and confirmation document generation. This layer automatically extracts relevant trading conditions, matches them against disclosure requirements, and prepares structured data for document generation, reducing the complexity burden on the document generation system itself.

Inventive Principle:

Principle #24Intermediary (Mediator)

3Measurement precision

If high-volume trading confirmation documents are processed manually, then detailed review can be performed, but productivity and processing speed deteriorate

Engineering Contradiction:

Improveaccuracy of document reviewVSAvoidprocessing speed of confirmation documents

Core Design Contradiction:

Measurement precisionVSProductivity

Solution Approach 1:

The confirmation document system performs self-validation by automatically checking generated documents against stored trading conditions and disclosure requirements. This self-service capability maintains high accuracy standards while enabling automated high-speed processing of large volumes of documents without manual intervention.

Inventive Principle:

Principle #25Self-service

Solution Approach 2:

Manual review processes are completely replaced with automated validation systems that use computational models to verify document accuracy. This substitution enables processing of high volumes of confirmation documents at speeds impossible for human reviewers while maintaining consistent accuracy standards.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

4Loss of information

If transparency in document generation processes is increased, then accuracy verification improves, but system complexity and computational requirements increase

Engineering Contradiction:

Improvetransparency of generation processVSAvoidcomplexity of processing system

Core Design Contradiction:

Loss of informationVSDevice complexity

Solution Approach 1:

The system implements feedback mechanisms that automatically track and record the generation process, validation results, and compliance checks for each confirmation document. This transparent feedback trail enables verification of accuracy without requiring complex manual auditing, as the system self-documented its processing logic and outcomes.

Inventive Principle:

Principle #23Feedback

Data Source

PatentUS12536185B2Innovative disclosure document evaluation and compliance system and method

Publication Date: 2026.01.27 MORGAN STANLEY SERVICES GROUP INC

AI summary

In one or more implementations, a computer-implemented system and method are provided for assessing relevance and accuracy of confirmation documents with respect to disclosure materials associated with completed activity.