In 1955, when John McCarthy coined the term ‘Artificial Intelligence’ (AI), McCarthy defined AI as “the science and engineering of making intelligent machines”. Almost 70 years later, the advent of Al in the various forms we interact with it today has radically transformed lives and the times; including, through revolutionary telecommunication, improved healthcare, efficient service delivery, better transport systems, immersive education and entertainment experiences.
Al and Arbitration, today:
The dispute resolution landscape is no different; Al does and will continue to impact the law in unprecedented ways. According to Global Arbitration Review, Al has, at present, already unbundled various aspects of legal work in many jurisdictions where machine-appropriate legal tasks such as research, transcription and certain drafting elements have been now been automated. Consequently, time spent on arbitrations is halved and associated costs are significantly reduced. In this regard, clerks and secretaries to arbitrators may soon be redundant.
Al as Arbitrators, in the long-term:
Beyond basic administrative assistance, the debate on the AI subject as concerns arbitration ultimately turns on whether Al can act as arbitrators. Put differently, can disputing parties submit their matter to a programmed robot or code together with all pertinent documents and information for adjudication? Notably, litigators and adjudicators are already using AI predictive software to determine the chances of success of disputes. In these instances, Al explores and offers possible outcomes to a dispute, implicitly acting as a decision-maker should its decision sway the litigators or adjudicators, as the case may be, and so the formal use of Al as the singular arbitrator in the near future is not a far-fetched thought.
Are Al-Arbitrators likely to supplant Human-Arbitrators?:
Nevertheless, the concerns with installing Al as arbitrator are readily appreciable and include the risk of confidentiality and personal data protection. Lack of transparency over control of arbitral data and algorithm jeopardizes the sanctity of arbitrations. These risks coupled with the fact that arbitration is one of those nuanced practices that requires the exercise of niche skills inherently human such as emotional intelligence, the art of persuasion, intuition, sense of equity, diplomacy, discretion which are either lacking or underdeveloped in
Al, lead the charge in the case against the total rise of AI-Arbitrators.
It has also been argued that AI has a tendency to perpetuate biases contained in the training data, has a propensity to mix up or invent information to fill knowledge gaps and is unable to identify the logic or sources of information used to produce given output.
Whilst Al regulation and legislation has been largely lacking, on 13 March 2024, the European Union passed the AI Act, the world’s first comprehensive AI law. On 14 March 2024, the United Nation General Assembly unanimously adopted the first global resolution on artificial intelligence. Both laws take a protectionist approach seeking to limit Al’s application within certain ethical boundaries. This approach, and the fact that strictly speaking, an Al-Arbitrator rendered award would likely face enforcement challenges in many jurisdictions, further informs the position that Al-Arbitrators are not a forgone conclusion.
Conclusion: What does a truce look like, then?:
AI is certainly at a disadvantaged position in usurping human-arbitrations more so in high stakes arbitrations involving States or multinational enterprises. Nonetheless, as change is inevitable, a balanced approach needs to be taken on the matter where human-arbitrators must advocate for universally recognized limits and minimum standards in the use of agile-tested Al in arbitrations. If anything is a win in this new century, it is everyday people-centred problem-solving technology; be it Al or a human being steering said solutions.