Could and should an AI system decide your next business dispute?

While drafting an arbitration clause and choosing an arbitral institution, it would be advisable to check the rules of the arbitral institution to see if it allows or uses AI-assisted processes. One of the objectives would be to have human oversight by ensuring that a qualified arbitrator, not a machine, makes the final decision. This is because AI systems are often like black boxes and it is hard to know how a decision was reached. Furthermore, algorithms can inherit or amplify biases from their training data.

While AI may not fully replace arbitrators anytime soon, businesses should expect to see AI playing a growing role in arbitration globally whereby human judgment is enhanced, not replaced, by artificial intelligence.