Volume 2 Issue 2 (2023) ISSN 2764-6068

Research article
JNL: https://ijlcw.emnuvens.com.br/revista
DOI: https://doi.org/10.54934/ijlcw.v2i2.56

ARTIFICIAL INTELLIGENCE AND ITS ROLE IN THE DEVELOPMENT OF

THE FUTURE OF ARBITRATION

Mohammad Ali Solhchi

Allameh Tabatabai University, Tehran, Iran

Faraz Baghbanno
Allameh Tabatabai University, Tehran, Iran

Article Information:
ABSTRACT
Received AI has proven to be a powerful tool in various fields, and its integration
July 19, 2023
into arbitration is highly anticipated due to its potential to improve
Approved
efficiency, accuracy, and objectivity. This paper aimed to analyze how
July 29, 2023
AI can help streamline arbitration, reduce costs, ensure faster dispute
Accepted
November 27, 2023 resolution, and improve accessibility. By using machine learning
Published algorithms and natural language processing techniques, AI systems
December 28, 2023 can analyze large volumes of legal text, extract relevant information,
recognize patterns, and predict case outcomes. In addition, AI-driven
chatbots could provide users with instant support and assistance in
Keywords: navigating the complex arbitration process. However, ethical
considerations such as privacy and bias must be taken into account to
artificial intelligence, ensure that AI does not compromise fairness or jeopardize
arbitration, confidentiality in arbitration proceedings. The article concludes with
judgement, an examination of the transformative impact that artificial intelligence
law, will have on the future of arbitration and emphasizes the need for
technology
continued research and collaboration to realize its full potential while
preserving the integrity of arbitration practice.

FOR CITATION:

Solhchi, M. A., & Baghbanno, F. (2023). Artificial Intelligence and Its Role in the Development of
the Future of Arbitration. International Journal of Law in Changing World, 2 (2), 56-76. DOI:
https://doi.org/10.54934/ijlcw.v2i2.56
IJLCW 2.2 (2023) Solhchi, M. A. & Baghbanno, F.

1. INTRODUCTION

The intersection of artificial intelligence (AI) and international arbitration presents new
opportunities and challenges in this area. AI technologies, such as machine learning algorithms and natural
language processing, have the potential to revolutionize various aspects of arbitration. For example, AI
can help with case management by organizing and analyzing large volumes of documents more efficiently
than human counterparts. It can also facilitate the recognition of patterns and trends in past decisions,
support parties' arguments at hearings, or even predict possible outcomes.

However, integrating AI into international arbitration requires careful consideration to ensure that
transparency, accountability, reliability, and ethical standards are maintained [22] [11] Questions arise as
to how AI systems should be deployed, who is responsible for their maintenance and monitoring, and how
parties can trust the neutrality of the algorithms.

As technology continues to advance, it is imperative for arbitrators and practitioners to use AI

wisely while upholding essential principles such as party autonomy and due process in this important
dispute resolution mechanism on a global scale [8].

This paper aimed to analyze how AI can help streamline arbitration, reduce costs, ensure faster
dispute resolution, and improve accessibility. By using machine learning algorithms and natural language
processing techniques, AI systems can analyze large volumes of legal text, extract relevant information,
recognize patterns, and predict case outcomes. In addition, AI-driven chatbots could provide users with
instant support and assistance in navigating the complex arbitration process. However, ethical
considerations such as privacy and bias must be taken into account to ensure that AI does not compromise
fairness or jeopardize confidentiality in arbitration proceedings.

2. THE CONCEPT OF ARTIFICIAL INTELLIGENCE IN LAW

The concept of artificial intelligence in law has gained considerable attention and prominence in
recent years [15]. AI technology offers immense potential for efficiency and accuracy in the legal field.
From chatbots that can quickly answer basic legal questions to sophisticated algorithms [16] that can
analyze massive amounts of data and recognize patterns, AI has the potential to revolutionize the work of
legal professionals. One key area where AI is making great strides is in the review and analysis of
contracts. With its natural language processing capabilities, AI can efficiently sift through complex

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contracts, identify critical clauses, and even make recommendations based on past cases and legal
precedents [18]. In addition, AI-powered predictive analytics tools are being developed to help lawyers
assess the likely outcome of a case based on similar past cases. It should be noted, however, that while AI
offers great potential, it should be used as a tool and not as a substitute for human judgment and expertise
in complex legal matters. The concept of trust and ethical considerations also come into play as these
technologies deal with sensitive information, making privacy and security critical to their successful use
in the legal industry.

3. LEGAL ANALYSIS OF ARTIFICIAL INTELLIGENCE

Artificial intelligence (AI) has been a rapidly growing field in recent years with numerous
applications in various industries. However, the legal implications and challenges associated with AI have
also attracted a great deal of attention. it is important to understand the key legal aspects of AI to ensure
its fair and responsible use [17]. One of the most important legal issues related to AI is liability. Unlike
traditional software, autonomous AI systems have the ability to make decisions and take actions on their
own. This raises the question of who should be held responsible if an AI system causes harm or makes a
mistake. Determining legal responsibility can be challenging when AI operates in ways that cannot be
easily attributed to human actors. Establishing a framework for AI accountability is necessary to ensure
that the benefits of AI can be realized while protecting individuals from potential harm. Another important
legal aspect of AI is data protection and privacy.

AI systems often rely on large amounts of personal data to make accurate predictions or informed
decisions. This raises concerns about the collection, storage, and processing of data in compliance with
data protection regulations. It is important to investigate and understand how AI systems handle sensitive
data to ensure that proper consent is obtained and data protection rights are respected. Regulatory
frameworks must keep pace with the rapid advances in AI to protect individual privacy and ensure that
data is used ethically. In addition, AI poses a challenge to intellectual property (IP) law. Works created by
AI, such as paintings or novels, raise copyright issues. Determining whether AI should be considered a
legitimate creator is a complex matter that requires careful analysis of existing IP laws. In addition, the
use of AI to automate certain tasks, such as patent searches, raises concern about the patentability of
inventions made by AI systems.

Legal analysis is needed to define the scope of intellectual property protection and address the
emerging challenges posed by AI technologies. Legal professionals and lawyers need to understand the

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legal aspects of AI in order to navigate the evolving landscape of this technology. Liability, privacy, and
intellectual property are some of the most important legal issues related to AI. It is important to create a
legal framework that balances the promotion of innovation with the protection of individual rights.
Addressing these legal challenges will be critical to realizing the full potential of AI for the benefit of
society.

4. EVOLUTION OF TECHNOLOGY IN INTERNATIONAL ARBITRATION

The development of technology in international arbitration has significantly changed and improved
the efficiency of dispute resolution procedures. With the increasing globalization and complexity of
business transactions, it has become essential to adapt to technological advances in order to meet the
demands of the modern world [1] [21]. One of the most important technological advances is the emergence
of online dispute resolution platforms, which have revolutionized the way arbitration is conducted. These
platforms offer parties the convenience and flexibility to participate in arbitrations remotely, reducing
travel costs and saving time. Moreover, with the introduction of artificial intelligence tools, big data
analysis, legal research, and drafting of legal documents have become more accurate and efficient.

Another significant technological development in international arbitration is the use of

videoconferencing and teleconferencing. These means of communication have bridged the geographical
differences between parties, arbitrators, and experts and made cross-border dispute resolution more
feasible and cost-effective. Video conferencing allows for face-to-face interaction by replicating the
physical presence of the parties in a hearing room, thus enhancing cooperation and communication during
the proceedings. In addition, the integration of electronic evidence presentation systems has made it easier
for parties to present complex documents, exhibits, and multimedia presentations, resulting in a more
streamlined and visually appealing mediation process.

In addition, the digitization of case management systems and the establishment of virtual hearing
rooms have played a crucial role in the development of technology in international arbitration. Case
management systems allow for efficient organization and storage of case-related documents, simplify case
management, and ensure easy access to information for all parties. Virtual hearing rooms mimic the
traditional hearing environment by providing secure and user-friendly interfaces for parties, arbitrators,
and witnesses to present evidence, examine witnesses, and cross-examine remotely. These virtual hearing
rooms also offer additional features such as real-time transcription and interpretation services that enhance
the transparency and accessibility of the arbitration process.

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In conclusion, the advancement of technology in the realm of international arbitration has brought
about a revolutionary transformation in the resolution of disputes on a global level. The introduction of
online dispute resolution platforms, teleconferencing, digitized case management systems, and virtual
hearing rooms has significantly enhanced efficiency, reduced expenses, and expanded the availability of
justice. As technology continues to progress, it becomes crucial for practitioners in this field to remain up-
to-date and effectively utilize the potential of technology to adapt to the constantly evolving demands of
international arbitration.

4.1. Important technological developments shaping the landscape of arbitration in international

law

Significant technological advancements have revolutionized the field of arbitration in international

law, enhancing efficiency, accessibility, and the overall process of dispute resolution. One noteworthy
development is the emergence of virtual arbitration hearings, facilitated by video conferencing platforms,
which eliminate geographical barriers and enable parties from different corners of the globe to participate
remotely.

This breakthrough not only reduces travel costs and time but also fosters inclusivity and diversity
in international arbitration. Another pivotal advancement lies in the integration of artificial intelligence
(AI) tools into case management systems. These tools efficiently process vast amounts of legal data,
analyze precedents, and offer predictive insights to arbitrators. Moreover, AI-powered technologies
provide automatic translation capabilities, effectively overcoming language barriers during arbitration
proceedings. This integration of AI not only expedites the process but also enhances the quality of
decision-making. Furthermore, block chain technology has demonstrated its potential in enhancing
transparency and security in international arbitration. By securely storing evidence and enabling real-time
tracking of procedural steps, block chain ensures a higher level of trust and accountability within the
system.

Collectively, these significant technological developments are reshaping the landscape of

international arbitration. They accelerate proceedings, reduce costs, improve access to justice, promote
equality among participants, and foster trust in the system. As a result, the field of arbitration is becoming
more efficient, inclusive, and reliable, ultimately benefiting all parties involved.

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4.2. Advantages and challenges of the emergence of artificial intelligence in international

arbitration

The emergence of artificial intelligence (AI) in the realm of international arbitration presents a host
of unique advantages and challenges. Foremost among these benefits is the potential to enhance the
efficiency and accuracy of arbitration proceedings. AI technology possesses the ability to analyze vast
quantities of data, discern patterns, and provide swift and dependable predictions, thereby enhancing the
decision-making processes of arbitrators.

Furthermore, AI can expedite the review of documents by facilitating the identification of pertinent
evidence and reducing the laboriousness of manual work. Nevertheless, the utilization of AI in
international arbitration also entails several challenges. The primary concern revolves around ensuring
transparency and accountability in decision-making, particularly when relying on intricate algorithms that
may lack human supervision.

Additionally, legitimate concerns regarding privacy and security arise as these systems process
sensitive information. Striking the right balance between the advantages of AI and its potential drawbacks
poses a significant challenge for arbitrators worldwide. A prudent approach that amalgamates human
expertise with the capabilities of machine learning [23] could assuage these challenges and foster a
harmonious coexistence between AI technology and the practice of international arbitration.

5. UNDERSTANDING THE ROLE OF ARTIFICIAL INTELLIGENCE IN INTERNATIONAL

ARBITRATION

Artificial intelligence (AI) is revolutionizing the field of international arbitration, transforming and
enhancing various aspects of the dispute resolution process. As AI continues to evolve, it has become an
indispensable tool for international arbitration, offering immense benefits. By automating repetitive tasks
and providing valuable insights, AI technology empowers lawyers to concentrate on the more intricate
and strategic elements of the dispute resolution process [19]. This not only amplifies efficiency but also
elevates the quality of decision-making in international arbitration.

The remarkable ability of AI to process vast amounts of information and learn from previous cases
is reshaping the way disputes are resolved. It introduces a new era of efficiency, cost-effectiveness, and
reliability to the process. By leveraging AI, international arbitration is propelled into a realm where time-
consuming tasks are streamlined, allowing legal professionals to focus on the complexities of each case

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[7]. This technological advancement not only expedites the resolution process but also ensures that
decisions are based on a comprehensive analysis of relevant data.

AI technology offers a wide range of benefits in the field of law, including contract analysis, case
prediction, legal research, document review, and even virtual hearings. One of the key advantages of AI
lies in its remarkable ability to swiftly and accurately process vast amounts of data, thereby significantly
reducing the time and cost associated with traditional information gathering methods. By utilizing machine
learning algorithms, AI systems meticulously analyze past cases and legal precedents, equipping parties
with invaluable predictive insights regarding potential outcomes or settlement options. Consequently,
arbitrators are empowered to make well-informed decisions based on comprehensive and pertinent
information.

It is important to note that while AI should not replace human expertise, its potential to
revolutionize international arbitration cannot be overlooked. By enhancing efficiency, minimizing bias,
and ultimately delivering fairer and more reliable outcomes, AI has the capacity to transform the landscape
of cross-border disputes. This transformative technology holds the promise of streamlining the arbitration
process, enabling parties to navigate complex legal matters with greater ease and confidence. As a result,
the integration of AI into the realm of law stands to benefit all stakeholders involved, fostering a more
efficient and equitable legal system.

5.1. Increasing efficiency and accuracy through artificial intelligence-based tools in arbitration-
based

Artificial intelligence (AI) has revolutionized numerous industries, and arbitration is no exception.
The integration of AI-based tools in arbitration has the potential to significantly enhance efficiency and
accuracy. These cutting-edge tools can streamline the entire process of evidence gathering, research, and
analysis of intricate legal matters. By leveraging machine learning algorithms, AI tools can swiftly sift
through vast volumes of data to identify pertinent information and precedents, saving valuable time for
both arbitrators and the involved parties.

Moreover, AI's ability to minimize human bias, a potential pitfall in arbitration proceedings, further
fortifies the accuracy of decisions. AI-based tools also offer real-time comparisons of cases and predictive
analytics based on historical patterns, thereby contributing to more informed decision-making in complex

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disputes. By automating routine tasks and providing timely insights, AI serves as an invaluable assistant
to arbitrators, ultimately enhancing the efficiency and effectiveness of the overall arbitration process.

Furthermore, the integration of AI-based tools holds immense potential for enhancing transparency
and accountability within the realm of arbitration. By leveraging algorithms meticulously programmed to
adhere to specific rules and guidelines, AI can ensure that decisions are rendered consistently and
impartially. This, in turn, mitigates the risk of bias or favoritism, as the AI system remains impervious to
personal opinions or external influences. Moreover, AI has the capability to furnish a comprehensive audit
trail of the decision-making process, enabling parties involved to comprehend the rationale behind a
particular outcome.

This heightened transparency serves to foster trust in the arbitration process, as it becomes evident
that decisions are grounded in objective analysis rather than subjective assessments. Ultimately, the
integration of AI has the power to revolutionize the field of arbitration, rendering it more efficient,
accurate, and transparent.

5.2. Automation and streamlining of administrative tasks

Say goodbye to tedious administrative tasks AI-powered tools can automate and streamline various
administrative aspects of arbitration proceedings. From managing case files to scheduling hearings and
issuing notices, these tools can take care of the smallest details, saving time and effort for all parties
involved. As technology continues to advance within the legal system, the integration of artificial
intelligence (AI) is becoming increasingly prevalent in automating and simplifying administrative tasks
within the courts. AI systems have proven to be highly effective in streamlining various aspects of court
proceedings [12], allowing legal professionals to devote their attention to more complex matters.

These technologies encompass a wide range of functions, including document analysis and
retrieval, case management, and scheduling. By harnessing the power of machine learning algorithms, AI
can swiftly analyze vast volumes of legal documents and extract pertinent information, facilitating
efficient decision-making processes. Furthermore, AI-driven chatbots offer cost-effective solutions by
addressing frequently asked questions from litigants or providing basic legal advice. This integration not
only enhances efficiency but also significantly alleviates the workload of court staff. With the increased
accessibility of data analysis tools through AI applications, courts can also better evaluate their own
performance and identify areas for improvement, ultimately leading to the provision of superior services

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to the public. In essence, automation and the utilization of AI technology possess the potential to
revolutionize administrative tasks within the courts, boosting productivity while ensuring accurate and
timely results.

5.3. Evidence and document management by artificial intelligence in dispute resolution

Evidence and document management is an important aspect of dispute resolution because it plays
a critical role in identifying, collecting, organizing, and presenting evidence. The advent of artificial
intelligence (AI) systems has revolutionized the way these processes are conducted [6] [4]. AI-driven
platforms are able to streamline and automate mundane tasks related to evidence management, such as
indexing documents and extracting relevant information. Through advanced algorithms and machine
learning, AI can quickly analyze vast amounts of data from multiple sources including emails, contracts,
and invoices and identify patterns or anomalies that may be critical to resolving a dispute.

In addition, AI systems can use natural language processing techniques to understand complex
legal documents and provide valuable insights to lawyers and judges for decision-making. With these
technological advances, AI is transforming the management of evidence and documents in dispute
resolution by minimizing human error, reducing costs, saving time, increasing accuracy, and ultimately
improving access to justice for all parties involved.

Furthermore, AI can also help predict the outcome of legal cases based on historical data and
precedent. By analyzing past rulings and decisions, AI algorithms can provide attorneys with valuable
insights into the potential outcomes of their cases, allowing them to make more informed decisions and
develop stronger legal strategies. This predictive capability of AI not only saves time and resources but
also increases the chances of a favorable resolution for the client. Additionally, AI-powered chatbots and
virtual assistants can support clients 24/7 by answering their legal questions and providing assistance,
improving access to legal information and services.

5.4. Use in legal research and case analysis

Artificial intelligence (AI) is revolutionizing the field of legal research and case analysis,
significantly enhancing the efficiency and accuracy of lawyers. AI-powered platforms have the remarkable
ability to process vast amounts of legal documents in a fraction of the time it would take a human, thereby
saving valuable hours of laborious research. These platforms employ sophisticated machine learning

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algorithms to analyze patterns and extract invaluable insights from legal documents, enabling lawyers to
swiftly locate relevant precedents, statutes, and case law.

Moreover, AI-based tools elevate case analysis by unearthing connections between cases that may
elude human researchers. By uncovering these hidden connections, AI empowers lawyers to fortify their
arguments and develop more compelling strategies for their clients. The integration of AI1 in this domain
also ensures consistency in legal research by eliminating human error and bias that can potentially impact
the outcomes. Consequently, by incorporating AI into legal research and case analysis, professionals can
produce work of superior quality with heightened efficiency.

Moreover, AI technology can analyze vast amounts of legal data in a fraction of the time it would
take a human researcher. This allows lawyers to quickly identify relevant precedents, statutes, and case
law, saving valuable time and resources. In addition, AI-powered tools can provide real-time updates on
changes in the law and court rulings, ensuring that lawyers are always up to date with the latest
developments in their field. By using AI in legal research and case analysis, lawyers can increase their
expertise and provide more accurate and comprehensive advice to their clients.

6. UNDERSTANDING THE CONCEPT OF MACHINE LEARNING AND ITS APPLICATION

IN JUDGING

The concept of machine learning, a branch of artificial intelligence, has revolutionized the judiciary
by using data and algorithms to make informed decisions [14]. Using machine learning, judges can analyse
large amounts of information and identify patterns that humans may miss. By training models on large
data sets, machine learning algorithms can learn from past cases and make predictions about future
outcomes with remarkable accuracy. In the context of adjudication, this technology has applications in
various areas, such as predicting sentencing based on the severity of the crime and the characteristics of
the offender or assessing the credibility and reliability of witness testimony. The ability to automate these
tasks reduces human bias, increases efficiency and ensures more consistent decision-making.

By combining the power of algorithms with human judgment, we can strive for a fairer and more
equitable justice system. Algorithms [5] can help judges by making data-driven predictions and
recognizing patterns that may not be immediately apparent. However, it is important to remember that

1
Voltaire Uses AI and Big Data to Help Pick Your Jury, Artificial Lawyer (26 April 2012),
www.artificiallawyer.com/2017/04/26/voltaire-uses-ai-and-big-data-to-help-pick-your-jury/ (last visited on
13 May 2023).

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algorithms are only as good as the data on which they are trained, and they can also perpetuate biases
present in the data. Therefore, judges must exercise caution and critically evaluate the results of the
algorithms to ensure that they are consistent with legal principles and fairness. In addition, the human
element in the justice system allows for empathy, discretion, and the ability to consider special
circumstances that may not be fully captured by algorithms. The right balance between technology and
human judgment is critical to the maintenance of justice and the integrity of the legal system.

Predictive analytics, with its ability to analyze large amounts of data and make accurate predictions
about future events, has the potential to revolutionize decision-making in international arbitration. By
using historical case data, machine learning algorithms can identify patterns and trends that can help
arbitrators make more informed decisions. These predictive models can provide insights into various
aspects of arbitration, such as the likelihood of success or failure of a particular argument, the optimal
timeframe for settlement negotiations, or even the selection of a suitable arbitrator based on their past
track record. The impact of predictive analytics on decision-making in international arbitration is immense
- it increases the efficiency and effectiveness of the process by reducing uncertainty, increasing
transparency, and ultimately improving outcomes for all parties involved. Although the use of predictive
analytics in this context presents challenges in terms of data protection and reliability, the potential benefits
should not be overlooked. As technology advances and more lawyers realize its value, predictive analytics
will become an indispensable tool in shaping the future landscape of international arbitration.

7. THE POSITION OF MORALITY AND HUMANITY

Ethical considerations and the role of humans in AI-assisted arbitration are crucial aspects that
need to be carefully considered. While artificial intelligence (AI) has made remarkable progress in its
ability to analyses vast amounts of data, make accurate predictions and facilitate decision-making
processes, it is important to recognize its limitations and potential biases. Human participation is essential
to ensure fairness, accountability and transparency in AI-driven arbitration systems. Because arbitration
involves complex legal issues and the assessment of people's behavior and intentions, human expertise is
invaluable in correctly interpreting the context, upholding ethical standards and preventing unfair or
adverse outcomes. Humans can provide the necessary balance by critically examining AI results for hidden
biases or errors, assessing subjective factors beyond quantitative data analysis, and taking into account
cultural sensitivities when making decisions that have a significant impact on the various parties involved
in an arbitration [10]

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Furthermore, the involvement of humans can ensure an element of empathy and compassion that
machines cannot fully replicate. Therefore, it is imperative that when using AI in arbitration, we also
recognize the importance of an active human presence to ultimately support a fair and equitable resolution
process. By involving humans in the arbitration process, we can also address the ethical concerns
associated with the use of AI. Humans can ensure that decisions are made with integrity and in accordance
with legal and moral standards. In addition, human involvement allows for consideration of unique
circumstances and exceptions that may not be captured by AI algorithms. This combination of human
judgment and AI capabilities can lead to a more comprehensive and equitable resolution process.

The use of artificial intelligence (AI)2 in arbitration raises a number of ethical dilemmas and
concerns. A primary problem is that the decisions made by AI algorithms may not be transparent or
explainable, leading to a lack of accountability and potentially unjust outcomes. There is also the problem
of bias in AI systems, as they are trained based on historical data that may contain inherent biases. This
could lead to discriminatory judgments3 that perpetuate inequalities in society. In addition, privacy and
confidentiality issues must be addressed when using AI in arbitration, as these systems can process and
store sensitive personal data. This raises questions regarding the security of data processing and the
possibility of unauthorized access or misuse. The ethical use of AI in arbitration requires clear guidelines
and control mechanisms to ensure fairness, transparency, non-discrimination, and compliance with data
protection standards.

In addition, it is critical to establish accountability and responsibility for decisions made by AI

systems in arbitration. As these systems become more sophisticated and autonomous, it is important to
clarify who can be held liable for any errors or biases. This raises important legal and ethical considerations
that must be addressed to ensure that AI is used in a just and fair manner. In addition, continuous
monitoring and evaluation of AI systems in arbitration is essential to identify and correct potential biases
or discriminatory patterns that may emerge over time. This will help maintain public confidence in the
fairness and integrity of the arbitration process.

2
“The Intelligent Legal Research Choice”, Ross Intelligence, www.rossintelligence.com/ (last visited on
11 May 2023). Other applications such as Casetext are now claiming superiority over Ross, see “Casetext
v. Ross Intelligence”, Casetext, https://casetext.com/ross-vs-casetext/ (last visited on 11 May 2023).
3
Aletras et al., supra note 29, at 5 (The researchers’ assumption was èthat the text extracted from
publishedjudgments of the Court bears a sufficient number of similarities with, and can, therefore, stand
as a (crude) proxy for, applications lodged with the Court, as well as for briefs submitted by parties in
pending cases.æ).

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8. BALANCING THE ROLE OF AI AND HUMAN JUDGEMENT IN ARBITRAL

PROCEEDINGS

Balancing the role of AI and human judgment in arbitration is a complex undertaking that requires
a thoughtful and nuanced approach. While AI technologies have the potential to significantly streamline
and improve the efficiency of arbitration proceedings, it is critical to preserve the integrity and fairness of
those proceedings by ensuring that human judgment remains central. The use of AI can expedite tasks
such as document review, legal research, and data analysis, saving costs and time in arbitration
proceedings. However, due to the inherent limitations of machine learning algorithms, human intervention
is required to verify results and provide contextual interpretation.

In addition, arbitrators possess invaluable qualities such as empathy, discretion, and interpretive
skills that are critical to applying legal principles to each individual case. Therefore, to achieve an optimal
balance between the capabilities of AI technology and human decision-making authority, guidelines must
be carefully formulated to determine when to use or override automated judgments based on ethical
considerations and the specific characteristics of the arbitration in question. By leveraging the strengths
of AI tools and humans, we can increase efficiency while maintaining fairness in arbitration proceedings.

Artificial intelligence (AI) has significant implications and potential consequences for arbitrators
and legal practitioners. One noticeable impact is the automation of repetitive and time-consuming tasks,
such as sorting through large volumes of documents during evidence hearings or conducting legal
research. AI-powered software can speed up these processes, allowing lawyers to focus on more complex
aspects of their cases and increasing their overall efficiency.

In addition, AI algorithms enable predictive analytics that help arbitrators evaluate case outcomes
or predict settlement opportunities by analyzing past decisions and data patterns. However, there are
concerns about bias in AI decisions because they rely heavily on historical data that may reflect existing
biases. Ethical considerations are paramount when implementing AI in arbitration or practice to ensure
the transparency of the algorithm and regularly review its results. Moreover, the use of AI may require
lawyers to develop new skills to understand, interpret, and challenge machine-generated decisions.

Ultimately, the use of AI can revolutionize the field of arbitration and law by streamlining
processes and improving access to justice. However, careful implementation is critical to minimize
potential risks. In addition, it is important to address the potential biases that may be inherent in AI

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algorithms. The data used to train the AI system can inadvertently introduce biases that lead to unfair
results. Therefore, it is essential to ensure that the training data is diverse, representative, and free of
discriminatory patterns. Regular audits and monitoring of the AI system can help identify and address any
biases. While AI can greatly improve efficiency and accuracy in arbitration and litigation4, it should never
completely replace human judgment. The human element is critical to maintaining fairness, empathy, and
the ability to consider special circumstances that cannot be captured by algorithms. AI should be seen as
a tool to assist lawyers, not as a substitute for their expertise.

8.1. The effects of artificial intelligence on the activity of legal professionals

Artificial intelligence (AI) has undoubtedly revolutionized the legal profession and significantly
impacted the role and activities of lawyers. Thanks to its ability to process large amounts of data quickly,
AI has greatly improved the efficiency of tasks such as document review and due diligence, reducing the
time-consuming manual work previously performed by lawyers. In addition, AI-powered technologies
have significantly improved legal research by enabling comprehensive analysis and access to a wide range
of legal information. However, concerns remain about the potential displacement of certain tasks
traditionally performed by lawyers. While AI can efficiently analyze data and predict outcomes, complex
decisions often require human input to address ethical considerations and interpret context-specific
nuances.

Therefore, it is critical for lawyers to adapt their skills to complement AI-driven systems, rather
than be replaced by them. Lawyers should view AI as a tool that can improve their work, not as a threat
to their profession. By using AI technology, lawyers can streamline their workflows, increase their
efficiency, and focus on more complex and strategic tasks. This collaboration between humans and AI can
lead to better outcomes for clients, as lawyers can use AI's data analytics capabilities to make more
informed decisions and provide more accurate advice.

In addition, lawyers can use their expertise to ensure that AI systems are designed and implemented
to meet ethical standards and respect the rule of law. In addition, AI technology can help lawyers conduct
extensive legal research and analysis in a fraction of the time it would take a human. By automating
repetitive tasks like document review and contract analysis, AI can free up valuable time for attorneys to

4
Boundless Legal Intelligence, ArbiLex, www.arbilex.co/welcome (last visited on 20 May 2023).

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focus on complex legal arguments and strategic planning. Not only does this increase productivity, but it
also allows lawyers to provide more customized and tailored services to their clients.

In addition, the use of AI in the legal field can lead to cost savings for both law firms and clients.
By automating routine tasks, law firms can reduce their reliance on large teams of staff, resulting in lower
overhead costs. This, in turn, can make legal services more accessible and affordable to clients who were
previously deterred by high fees. However, it is important to note that while AI can significantly improve
the legal profession, it should not completely replace human lawyers. The expertise, judgment, and
empathy of human lawyers are irreplaceable. AI should be seen as a tool to complement and support
lawyers, not replace their skills and experience.

In summary, the integration of AI technology into the legal field has the potential to revolutionize
the way lawyers work and deliver services to their clients. By leveraging AI, attorneys can streamline their
workflows, increase efficiency, and ultimately achieve better outcomes for their clients without sacrificing
ethical standards and the rule of law. The ability to use artificial intelligence (AI) tools for legal research
and analysis is becoming increasingly important in the legal field. As technology advances, AI-powered
platforms are revolutionizing the way lawyers conduct research and analyze cases. Students pursuing legal
careers must acquire a high level of competency in using these tools to stay ahead in the ever-evolving
legal landscape. AI tools offer several advantages for legal research. They are able to analyze large
amounts of data and provide comprehensive and relevant information in a fraction of the time that manual
research methods would require.

In addition, these tools can identify patterns and highlight important findings that are not
immediately apparent to human researchers. By effectively using AI tools, lawyers can streamline their
workflows, focus more on legal analysis, and make informed decisions with greater efficiency. It is equally
important to understand the results generated by AI tools. While AI can help find and organize relevant
legal information [17], it is critical for students to critically evaluate and interpret the results. A solid
foundation of legal principles and theoretical knowledge is essential to understanding the context and
meaning of the information retrieved by AI tools. Students should not rely solely on AI-generated results,
but use them as a starting point for further investigation and analysis. By linking their legal knowledge to
AI-driven insights, students can develop a comprehensive understanding of legal issues and make
informed judgments.

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In summary mastering AI tools for legal research and analysis has become an indispensable skill
for students pursuing legal careers. The ability to use these tools effectively can greatly increase the
efficiency and accuracy of research papers. However, students must remember that AI is a tool and not a
substitute for critical thinking and legal expertise. By combining their legal knowledge with AI-driven
insights, students can develop a well-rounded skill set that will serve them well in the ever-evolving legal
profession.

8.2. Importance of human oversight and decision-making in AI-based arbitration

As fascinating as AI technology may be, it lacks one thing: good old human judgment [25]. In AI-
powered arbitration, lawyers provide the human oversight necessary to ensure that AI systems operate
within ethical and legal boundaries. They are responsible for interpreting the results generated by the AI,
reviewing the rationale behind those results, and ultimately making informed decisions that take into
account not only the data but also the human impact. Human supervision and decision-making play an
important role in AI-based arbitration. Artificial intelligence systems are supposed to be efficient and
objective, but they lack the fundamental qualities of empathy, intuition, and contextual understanding that
humans possess. Human involvement ensures a fair and equitable outcome by interpreting the nuances of
each case, considering unique circumstances, and appropriately applying ethical principles or legal
precedents.

In addition, human arbitrators have a wealth of experience and expertise that allows for a more
comprehensive evaluation of complex cases involving multiple variables. Their ability to empathize with
the individuals involved also increases overall satisfaction with the arbitration process. Human supervision
is also critical to maintaining the accountability of AI algorithms, as biases can unwittingly creep into
machine learning models during data collection or model training phases. Ultimately, combining the
strengths of AI technology and human intelligence results in a balanced and reliable arbitration system
that ensures transparency, fairness, and equity.

Legal research and analysis form the backbone of any successful legal strategy. In the field of AI-
based arbitration, lawyers must master the use of AI tools specifically designed for legal research and
analysis. By harnessing the capabilities of these tools, they can streamline their research process, access
relevant case law, and extract valuable information more efficiently, giving them a competitive advantage
in the arbitration arena. With the right mix of legal expertise, technical know-how, and a keen eye for
human scrutiny, lawyers are well equipped to navigate the exciting terrain of AI-based arbitration.

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Harnessing the potential of AI while upholding the fundamental principles of the legal profession is the
silver bullet to achieving the best results. As artificial intelligence plays an increasingly important role in
the legal field, ensuring fairness and impartiality is critical. Lawyers must carefully evaluate the algorithms
used in AI-powered arbitrations to identify and eliminate any biases or discriminatory patterns.

Maintaining confidentiality and privacy is another important aspect to consider in AI-based

arbitration. With the use of technologies robust measures are needed to protect sensitive information [13].
Lawyers must be well-versed in data privacy laws and regulations to ensure confidentiality and protection
of client data. In the era of AI-based arbitration, effective communication and negotiation skills are
essential for lawyers. They must be able to make complex legal concepts understandable to non-legal
stakeholders such as clients or arbitrators who may not have a legal background. Clear and concise
communication is critical to ensure that everyone involved in the arbitration understands the legal
implications and rationale for decisions.

Negotiating with opposing parties can be challenging, even in AI-based arbitrations. Lawyers must
master negotiation strategies and techniques to achieve favorable outcomes for their clients. Collaboration
and teamwork are also critical in a technology-based arbitration environment. Lawyers must be prepared
to work with AI systems and collaborate effectively with other professionals to ensure the arbitration runs
smoothly and efficiently. The landscape of AI-enabled arbitration is constantly evolving and requires
lawyers to be able to continuously educate and adapt.

To understand the capabilities and limitations of these systems, it is important to keep up with
advances in AI technologies. Lawyers must also be prepared to adapt their strategies and approaches as
AI technologies continue to shape the field of arbitration lawyers involved in AI-based arbitration must
be ethical, have effective communication and negotiation skills, and continuously learn and adapt in a
rapidly evolving landscape. By mastering these skills and knowledge areas, lawyers can navigate the
complexities of AI-based arbitration while ensuring fairness, confidentiality, and favorable outcomes for
their clients. In summary, the integration of AI technologies into arbitration presents both opportunities
and challenges for lawyers. By acquiring the necessary skills and knowledge, lawyers can leverage AI-
based arbitration to improve their practice and provide efficient and effective dispute resolution to their
clients.

Continuous learning, adaptability, and ethical considerations discussed in this article are essential
to navigating the evolving landscape of AI-based arbitration. By making an effort to stay abreast of

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advances in AI technologies and focusing on maintaining fairness and transparency, lawyers can build a
successful career in this emerging field. By harnessing the power of AI and combining it with their legal
expertise, lawyers can achieve optimal outcomes for all parties involved in the arbitration process.

9. CONCLUSION

Artificial intelligence (AI) plays a crucial role in shaping the future of arbitration. The use of
advanced technologies such as machine learning and natural language processing can revolutionize the
way disputes are resolved and deliver more efficient and accurate outcomes. AI-powered arbitration
systems have the potential to streamline the process by automating routine tasks such as document review
and analysis, allowing arbitrators to focus on more complex matters.

In addition, AI algorithms can analyses large amounts of data and past precedents to help
arbitrators make informed decisions. This integration of AI into arbitration not only saves time, but also
increases transparency and fairness by reducing human bias. However, it is crucial to recognize that while
AI brings several benefits, its implementation must be approached with caution. A balance between human
judgement and technological assistance is essential to ensure trust in the arbitration process while
harnessing the benefits of AI for more effective dispute resolution.

An important consideration in the introduction of AI in arbitration is the need for proper regulation
and oversight. Clear guidelines and standards must be established to ensure that AI systems are used
ethically and responsibly. In addition, continuous monitoring and evaluation of AI algorithms is needed
to avoid potential biases or errors that may occur. By taking these precautions, we can harness the power
of AI to improve the arbitration process while maintaining trust and integrity.

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ABOUT THE AUTHORS

Mohammad Ali Solhchi

PhD in Public International Law from University of Glasgow, UK (1993).
Member of Faculty of law and Political Science Allameh Tabatabai University,
Tehran, Iran.
Researcher of Settlement of international disputes.
Member of Iran Central Bar Association.
e-mail: [email protected]

Faraz Baghbanno
Master of International law of Allameh Tabatabai University, Tehran, Iran.
Member of United Network of Young Peacebuilders of United Nations.
Researcher of Artificial Intelligence and International law.
e-mail: [email protected]
ORCID ID: https://orcid.org/0000-0001-8212-6587

ABOUT THIS ARTICLE

Conflict of interests: Authors declare no conflicting interests.

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