Editor’s Note: The Fourth Seminar of the International Commercial Expert Committee of the Supreme People’s Court and Reappointment (New appointment) Ceremony of Expert Members was held successfully on September 25, 2024. Over 40 experts from more than 20 countries and regions focused on the theme of the “Collaborative Dialogue, Diverse Integration, Peaceful Development” during the seminar. Extensive and in-depth discussions were held within the framework of four specific issues. The texts of speeches delivered by the members of expert committee and distinguished guests during the discussion session on Topic Four Innovation in digital era: AI’s application in dispute resolution and its outlook would be posted on the CICC’s website.

The Role of Artificial Intelligence in Transforming Dispute Resolution: Opportunities, Challenges, and Future Prospects

Colin Ong 

President of Arbitration Association Brunei Darussalam 

Chairman of the International Advisory Board of the Thailand Arbitration Centre

Distinguished President Zhang Jun of the Supreme People’s Court of China, Distinguished Members of the International Commercial Expert Committee, Ladies and Gentlemen,

Dear Friends,

Greetings to everyone of you all!

Artificial Intelligence is increasingly impacting the speed of both court proceedings and arbitration.  Judges, arbitrators and lawyers now have more effective means than they did 5 years ago to filter the relevant and material evidence and legal authorities.   

Artificial Intelligence will eventually replace certain aspects of legal practice to allow more smart automation of mundane legal tasks. This will allow judges, arbitrators and lawyers to focus on more complex analytical work and to perform more efficiently.

The COVID-19 pandemic has transformed court practices in many countries and arbitration practices globally. Since the pandemic, arbitration proceedings have moved on to digital formats. This has in turn created large databases which are essential for Artificial Intelligence machines to learn and self improve.

Electronic-discovery of document systems also serve as database platforms and now play a crucial role in dispute resolution in both arbitration and litigation. Such software which streamline and enhance information management and the decision-making process is another example of how far Artificial Intelligence has become an essential part of the dispute resolution process.

Lawyers are now using Artificial Intelligence to assist in simple but time consuming processes including the investigation, identification, collection, and preservation of relevant documentary evidence which are relevant to the legal dispute.

Artificial Intelligence software can now quickly extract and assemble both legal statutes, case law and hundreds of thousands of documents into a user-friendly central database. Artificial Intelligence significantly reduces the time for lawyers, judges and arbitrators who would otherwise have to manually sort through such documents and case law. This then allows them to focus on more complex legal analysis and technical tasks.

E-discovery processes that were once labour and time intensive are now managed by Artificial Intelligence-based systems, which can quickly generate documents ready for legal review.

Artificial Intelligence is able to quickly analyse the issues of a party, relate them to applicable laws and identify relevant legal provisions and case law. Such application of Artificial Intelligence greatly reduces the time lawyers spend preparing their cases. In turn, this lowers the costs incurred by parties, who usually have to pay their lawyers by the hour to locate relevant documentary evidence and legal provisions.

Every day, the internet, social media, and global interconnectivity have brought people and cultures closer together and encourages more cross-border trade. In cross-border disputes, language barriers tend to impede an efficient arbitration process, where cross-border parties come from different linguistic backgrounds.

Artificial Intelligence can now bridge this language gap through Natural Language Processing software which enables computers to interpret and generate human language. Natural Language Processing can be used to extract critical information from legal documents, contracts, emails, and other texts, facilitating automated document review, contract analysis, and information retrieval.

Artificial Intelligence can also assist arbitrators, who often spend considerable time analysing data provided by the parties to identify relevant information such as party details, procedural history, facts, and arbitration clauses.

Artificial Intelligence can act as an arbitrators assistant and replace tribunal secretaries. It can help to draw out the key facts and submissions and therefore ease the arbitrator’s workload. This supports the drafting of awards and automate or streamline case management, allowing arbitrators to focus on their true function which is to hear and resolve disputes. This will also save costs for the Parties. It can also ensure a more neutral and reliable factual sifting process for the arbitrator.

Predictive Analytics for Case Outcomes

Predictive analytics plays a significant role in Dispute Resolution. It can enhance decision-making through the use of algorithms to analyse vast quantities of documents and their underlying data. By analysing historical case outcomes and legal case precedents, Artificial Intelligence systems can uncover patterns, correlations, and trends that may not be immediately obvious to human observers. This capability provides legal professionals with valuable insights, enabling them to make more informed predictions about the likely outcomes of cases.

Artificial Intelligence is able to quickly analyse historical data from vast numbers of cases and identify delicate factors that influence outcomes. This will assist lawyers to predict the chances of success or failure in a dispute. The analytical efficiency in this aspect can save time and costs for parties while assisting judges and arbitrators to write more accurate and better reasoning in their decision-making process.

A lot of discussion has centred around Artificial Intelligence machines taking over from human arbitrators. The benefits of using Artificial Intelligence machines as arbitrators include impartial decision-making, time and cost savings. It also completely eliminates emotional bias since Artificial Intelligence operates purely on algorithms and factual data.  Decisions made by Artificial Intelligence should be consistent across similar cases with similar facts, unlike human arbitrators whose judgments may differ due to their emotional state of mind. At the outset, such consistency would build confidence in the arbitration process.

However, there are significant concerns about Artificial Intelligence lack of empathy and contextual awareness. Unlike human arbitrators, Artificial Intelligence cannot understand the fine emotional subtlety or complicated cultural issues that often arise in disputes. This obstacle may lead to decisions being considered as insensitive. It will increase the potential for additional conflicts and also leave parties deeply dissatisfied with the dispute resolution process.

The complete absence of any human participation in the decision-making process may raise an ethical dilemma. Human arbitrators are valued for their emotional intelligence including empathy and sympathy which Artificial Intelligence is unable to replicate.

While Artificial intelligence can eliminate or reduce human error and unpredictability, the ability to choose one’s arbitrator is a fundamental appeal of arbitration.

I thank you for your attention.