An insurer wants to extract its own clause types, such as hail-damage riders and named-driver exclusions, from claim letters. The data team has 600 letters labelled with these clause types. Downstream auditing needs the exact character offset of every mention, and the data team must be able to retrain the extractor as new clause types appear. What should you use?
Choose one.
Custom NER trains an extractor for your own entity categories from labelled examples.
The insurer needs its own categories, has labelled data, needs precise offsets and wants a retrainable model. Custom NER is built for exactly that. Prebuilt NER lacks the categories, key phrase extraction has no categories or training, and a prompted language model can name the clauses but doesn't give dependable span offsets or learn from the labelled set.
- Spot the custom categories: the clause types are the insurer's own.
- Note the labelled data and the offset requirement.
- Choose the feature that trains on labelled spans and returns offsets.
- Reject the preconfigured features and the untrained prompt.
Exam tip: Own categories + labelled data + exact spans = custom NER.
AI-103: Text Analysis, PII, Content Safety and Translation with Foundry — the lesson that teaches this.