Artificial Intelligence (AI) refers to the ability of computers or computer-controlled robots to perform tasks that require human intelligence and human capabilities. This means programming machines in such a way so that complex human tasks are completed in a fraction of second without the need for human interference.
The world is no stranger to the concept of Artificial Intelligence. A lot of advancements and developments have been made since the concept was first founded in the year 1955 by John McCarthy. It has become the centrepiece of the technological revolution and has managed to influence almost every aspect of our personal and professional life including raising and resolving disputes. Over the years, there have been numerous speculations about its impact on various sectors of the economy. International Arbitration has also become prey to these discussions.
In the post-COVID-19 world, unprecedented changes, and the ability to adapt to those changes have been need of the hour. Even before the pandemic, the process of digitization has helped in the storage of almost every kind of information required in arbitration such as pieces of evidence, details of arbitrators and the witnesses, and any kind of communication between parties to the dispute.
Today, there is a rise in apprehensions regarding the time taken and the resources required for the settlement of disputes. AI can potentially help in alleviating this problem by bringing down the time and costs involved in the settlement of disputes and assist in eliminating the risks and discouraging unsubstantiated claims, thereby motivating to settle early. However, simultaneously, several eyebrows are being raised about the efficacy of AI to dispense justice based on algorithms and their impact on the decision-making process. There have also been doubts regarding its transparency of arbitral data and the capability to protect personal data. These reasons alone may discourage the need to use AI for settling disputes.
How the use of AI will be beneficial for International Arbitration
AI today is at play in various fields like transportation, education, and healthcare and has shown satisfactory results. In International Arbitration as well, a stronger AI has the potential to change the way disputes are settled.
Drawbacks of using AI in Arbitration
Since every coin has two sides to it, so does AI in International Arbitration. Regardless of the advantages, it also has some negative impacts. These are:
Currently, there isn’t any legislation that explicitly talks about the usage of AI in the arbitration process. If somehow these systems do get approval from the legal community to be incorporated in arbitration, then, certain regulations and guidelines would be necessary to protect the interest of the parties and the legal community at large or it may lead to the role of human arbitrators becoming completely irrelevant.
Whether one likes it or not, there is no denying that Artificial Intelligence is ready to disrupt the traditional practices in International Arbitration. AI is the future. Like every invention, it has its merits and shortcomings. It depends on us whether we can take advantage of its potential for creating a better world.
Today, a lot of people are opting for alternate forms of dispute resolution, arbitration being the preferred choice of most. It becomes, even so, more cardinal for us to try and incorporate the use of AI in the legal sector. Artificial Intelligence provides arbitration with a golden opportunity to be able to achieve its goal of becoming a time and cost-effective form of dispute resolution.
ABOUT THE AUTHOR
Shreyans Jain is an advocate practicing before the High Court of Delhi and the district courts in Delhi. He is a graduate of VIPS, GGSIP University, Batch of 2014-19. His interest lies in International Commercial Arbitration and International Trade Law.