The 2025 International Arbitration Survey, co-authored by Queen Mary University of London, has highlighted a growing trend in the use of Artificial Intelligence (AI) within international arbitration. Published on 1 June 2025, the survey titled “The path forward: realities and opportunities in arbitration” predicts a significant increase in AI usage in the coming years.
Key Drivers and Challenges
The primary motivations for incorporating AI are efficiency, cost reduction, and minimization of human error. However, obstacles such as potential biases, confidentiality risks, and a lack of regulatory frameworks pose significant challenges. Despite these hurdles, the consensus among arbitration users is that AI will be widely adopted over the next five years due to its efficiency potential.
AI in Dispute Resolution
During the London International Disputes Week, held from 2 to 6 June 2025, discussions emphasized that AI tools in arbitration are not futuristic but a present reality. Participants expressed enthusiasm for AI, tempered by the need for transparency, guidelines, and training.
Defining AI Systems
The Organisation for Economic Co-operation and Development (OECD) updated its AI system definition in March 2024. It focuses on AI systems as machine-based setups that infer from inputs to generate outputs impacting environments. This definition is widely adopted, including by the Chartered Institute of Arbitrators.
Pros and Cons of AI Use
Advantages
– Research and Analysis : AI is predominantly used for factual and legal research, significantly expediting document review and analysis.
– Data Analytics : Although its use in data analytics is moderate, AI enhances efficiency in organizing large datasets and identifying trends.
– Document Drafting : AI aids in drafting correspondence, submissions, and evaluating legal arguments, though its full potential remains untapped.
Concerns
– Accuracy : Issues with linguistic or cultural biases.
– Data Security : Risks related to data breaches and confidentiality are prominent.
– Legal Drafting : AI’s limited capacity to draft complex legal documents and evaluate arguments is a concern.
– Oversight : AI should be used as a tool, not a replacement for human judgment, as highlighted by recent English court warnings.
General Concerns
Common issues include disparities in access to AI tools, necessitating clear guidelines and training. There is also concern about regulatory gaps and the potential for increased post-award challenges.
Regulatory Landscape
The EU’s proactive stance with the AI Act aims to balance safety, rights, and innovation. Conversely, the UK is yet to establish statutory AI regulations but is moving towards responsible AI use frameworks. Arbitral institutions like the Silicon Valley Arbitration & Mediation Center and the Vienna International Arbitral Centre have issued guidelines, albeit non-binding.
Future Directions
Sir Geoffrey Vos, in February 2025, emphasized the need for a balanced integration of AI in the UK legal system, advocating for improved access to justice. The acceptance of AI as crucial to legal services indicates a future where concerns may be addressed, rendering AI a commercial advantage.
Support from Dispute Resolution Experts
For those facing challenges with AI in international arbitration, expert arbitration lawyers can provide guidance. Their support ranges from addressing complex legal issues to offering practical advice, ensuring optimal outcomes for businesses.
Note: This article is inspired by content from https://www.hilldickinson.com/insights/articles/artificial-intelligence-international-arbitration-rising-challenge. It has been rephrased for originality. Images are credited to the original source.