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January 28, 2025

FAQs SERIES: AI in Arbitration

AI is increasingly used in arbitration to enhance efficiency, research and case management, while raising important legal, ethical and procedural fairness considerations.

1. What is AI in arbitration?

AI in arbitration refers to the use of artificial intelligence tools to assist in various aspects of the arbitration process, such as legal research, document review, case management and even predictive analytics for case outcomes.

2. How is AI currently being used in arbitration?

AI tools are used for:

  • Legal research and drafting submissions
  • Automating document review and evidence analysis
  • Predictive analytics for case strategy
  • Virtual hearing assistance, including transcription and translation

3. Can AI replace arbitrators?

No - while AI can assist in procedural aspects and streamline processes, the decision-making function in arbitration remains a human responsibility due to the need for legal reasoning, ethical considerations and the exercise of discretion.

4. What are the benefits of using AI in arbitration?

  • <span class="news-text_medium">Efficiency:</span> AI accelerates legal research and document analysis.
  • <span class="news-text_medium">Cost reduction:</span> By automating repetitive tasks, parties can reduce legal expenses.
  • <span class="news-text_medium">Improved case management:</span> AI-powered platforms enhance organisation and scheduling.
  • <span class="news-text_medium">Consistency:</span> AI can help ensure that past precedents and legal principles are consistently applied.

5. What are the risks associated with AI in arbitration?

  • <span class="news-text_medium">Bias and fairness:</span> AI models may perpetuate biases present in training data.
  • <span class="news-text_medium">Confidentiality concerns:</span> Arbitration relies on privacy, but AI tools may require cloud-based processing, posing security risks.
  • <span class="news-text_medium">Accuracy and reliability:</span> AI-generated content may not always be legally sound, requiring human oversight.
  • <span class="news-text_medium">Regulatory uncertainty:</span> There are no universal AI governance standards in arbitration yet.

6. How does AI impact procedural fairness in arbitration?

AI tools must be used in a way that ensures both parties have equal access and decisions are not influenced by unverified AI-generated insights. Transparency in AI usage is critical to maintaining procedural fairness.

7. Are there any legal or ethical concerns?

Yes - issues around AI accountability, transparency and data protection remain key concerns. Arbitrators and parties must ensure AI tools comply with arbitration rules and ethical standards.

8. What does the future hold for AI in arbitration?

AI is expected to become more integrated into arbitration processes, but regulations and ethical guidelines will shape its adoption. Hybrid arbitration models—where AI assists but does not replace human judgment—are likely to become standard.

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