The e-discovery company Merlin Search Technologies has launched Alchemy, a “document intelligence platform,” driven by generative artificial intelligence, that is designed to transform unstructured data into actionable intelligence for legal teams.

The Alchemy platform succeeds the previous version of Merlin’s platform, which was called DiscoveryPartner, and introduces several architectural innovations aimed at redefining how legal professionals interact with complex document sets during investigations and discovery.

Merlin founder and CEO John Tredennick describes Alchemy as a “significant evolution” of the company’s platform, representing, “the culmination of a five-year journey to create a truly transformative document intelligence platform” that can process and analyze thousands of documents to deliver comprehensive insights beyond simple search results.

“Alchemy embodies Merlin’s vision of transforming raw, unstructured data into valuable intelligence,” the company said in an announcement. “Like the ancient alchemists who sought to turn base metals into precious gold, Alchemy applies sophisticated AI technologies to convert previously overwhelming volumes of documents into actionable answers and insights.”

Key Innovations

The Alchemy platform introduces five major enhancements that collectively aim to overcome limitations in previous gen AI implementations for legal discovery:

  1. Dual-window prompt architecture. Alchemy separates search prompts — those relating to search and analysis of data — from formatting prompts — those providing instructions for formatting the delivery of responses. This prevents formatting requirements (such as to deliver the results in a table or in a bulleted list) from interfering with document analysis while maintaining formatting flexibility.
  2. Comprehensive document intelligence. Alchemy is able to deliver full reporting across all analyzed documents, rather than just the top 100, as in prior versions. That enables it to synthesize insights across thousands of documents using leading LLMs including Claude and GPT. Merlin says this enables it to provide “analytical sophistication previously unimaginable in legal technology.”
  3. Precision-guided follow-up intelligence. Alchemy gives users explicit control over query scope with clear options for follow-up questions, including a “Conversation Only” option that focuses on previous answers to reduce token usage.
  4. Limitless document analysis. Eliminates the platform’s previous 100-document limitation for extended analysis, enabling comprehensive reporting that captures both novel and previously reported information.
  5. Industry-first cost transparency. Alchemy provides real-time LLM cost estimation before running queries, so users can always check what a query will cost before entering it. This is designed to address concerns about gen AI expenses by providing clear pricing.

Evolution of Generative AI Implementation

Tredennick says that Alchemy represents the fourth generation in Merlin’s development of gen AI capabilities for legal discovery. He breaks down those generations as:

  • Gen I (October 2023): Established the foundation with 100-document analysis capability.
  • Gen II (March 2024): Expanded processing to include transcripts, medical records, and larger document sets in multiple languages.
  • Gen III (October 2024): Integrated find-analyze-report functions with multi-modal search into a single workflow.
  • Alchemy (March 2025): Delivers architectural breakthroughs in analytical accuracy, comprehensive reporting, user control, and cost transparency.

Practical Applications

While Alchemy’s core applications are for discovery and investigations, in a briefing last week, Tredennick demonstrated some of the other practical applications of this technology.

  • Transcript analysis and summarization. Several organizations are using the system to maintain transcript repositories that can be queried for purposes such as to identify instances where witnesses contradict each other or expert testimony. Through a partnership announced last year, the company U.S. Legal Support, a provider of court reporting and litigation support services, has integrated Merlin’s technology into its service offerings and now includes deposition summaries as a standard feature.
  • Medical record analysis. The platform is being applied to medical record analysis, with the ability to process thousands of pages of medical records and organize information around specific claims or issues. In one example cited by Tredennick, the system was used to analyze approximately 3,000 pages of medical records related to a nursing home fall case, generating a comprehensive report that included analysis of falls, emergency responses, elder abuse claims, risk management, and medication management.
  • Trial preparation and closing arguments. Tredennick demonstrated how the system can be used to prepare closing arguments by analyzing trial transcripts and evidence. In one example using litigation from the BP Deepwater Horizon case, the system was instructed to “act as lead trial lawyer for BP” and develop an outline for an effective closing argument based on trial testimony and exhibits. The resulting outline included detailed arguments, including ones that sought to push responsibility to other defendants.

“This is like crack for lawyers,” said Tredennick, himself a former litigator. “I would never do another case [without it].”

Competitive Landscape

Tredennick formerly founded the e-discovery company Catalyst, one of the first cloud-based discovery platforms and one of the first to develop advanced technology-assisted review. It was acquired by OpenText for $75 million in 2019.

He told me that he is confident that Alchemy’s capabilities surpass other offerings in the market. While some companies might offer timeline builders or document summarization, he said, few if any can match Alchemy’s comprehensive approach to document intelligence at scale.

William Webber, Merlin’s chief data scientist, underscored this point in the announcement, stating: “While other vendors struggle with basic gen AI implementation, we’re delivering a fourth-generation platform that fundamentally reimagines document intelligence.”

Availability and Webinar

Alchemy is now available on Merlin’s evaluation site, with public release coming later this week. Existing DiscoveryPartner customers will be automatically upgraded to the new platform.

This Wednesday, March 13, EDRM will host a webinar introducing Alchemy. The webinar will feature several of Merlin’s advanced gen AI users demonstrating the platform’s capabilities.

Learn more and register here: Introducing Merlin Alchemy: Using Next-Generation GenAI to Transform Information into Intelligence.

[Disclosure: I was a paid consultant to Tredennick’s previous company Catalyst from 2010 to 2017.]

 

Photo of Bob Ambrogi Bob Ambrogi

Bob is a lawyer, veteran legal journalist, and award-winning blogger and podcaster. In 2011, he was named to the inaugural Fastcase 50, honoring “the law’s smartest, most courageous innovators, techies, visionaries and leaders.” Earlier in his career, he was editor-in-chief of several legal publications, including The National Law Journal, and editorial director of ALM’s Litigation Services Division.