SCC Arbitration Institute Releases Guide on AI Use Under SCC Rules

<center><span class="news-text_italic-underline">Jurisdiction: Sweden</span></center>

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The SCC Arbitration Institute (“<span class="news-text_medium">SCC”</span>) has published non-binding guidance on the use of AI in cases administered under the SCC rules. The guide acknowledges that AI is a transformative field and given its substantial benefits, the guide proposes how to maintain adaptability and versatility when using AI while still contributing to the development of global best practices. The SCC encourages that, when using AI, Arbitral Tribunals should consider factors such as confidentiality, quality, integrity and non-delegation of decision-making.

Jake Lowther, Specialist Counsel at SCC, stated:

<p class="news-text_emphasize">“AI is the future! Its current application offers substantial benefits for arbitration users, particularly in terms of cost and time efficiency. We anticipate a dramatic increase in AI usage.”</p>

Harnessing AI’s Potential

The guide adopts a light-touch approach, emphasising the importance of flexibility while fostering the development of best practices. The SCC advises arbitral tribunals and relevant participants in arbitration to keep the following key factors in mind:

• <span class="news-text_medium">Confidentiality:</span> Certain AI applications may inadvertently compromise arbitration confidentiality. It is essential for participants, especially arbitral tribunals, to understand how any data input is processed when employing AI tools.
• <span class="news-text_medium">Quality:</span> Tribunals must ensure that utilising AI does not compromise the quality of their decisions. Human oversight is necessary to ensure appropriate review and verification of AI outputs prior to their incorporation in arbitration.
• <span class="news-text_medium">Integrity:</span> Transparency and accountability are vital for maintaining integrity. Tribunals are encouraged to disclose any use of AI in fact-finding, legal interpretation or application of law to ensure the parties' rights to be heard.
• <span class="news-text_medium">Non-delegation of Decision-Making Authority:</span> While AI can assist in decision-making, it must not replace the tribunal’s role. Arbitral tribunals retain sole authority over decisions and the reasoning behind them.

The Guide to the use of AI in cases administered under the SCC Rules can be accessed <a href="https://sccarbitrationinstitute.se/sites/default/files/2024-10/scc_guide_to_the_use_of_artificial_intelligence_in_cases_administered_under_the_scc_rules-1.pdf" target="_blank" class="news-text_link">here</a>.