Key Takeaways
The AAA’s AI Arbitrator is poised to expand beyond construction disputes. Interested practitioners should learn its workflow, assess which disputes might suit AI-assisted resolution, and consider using a simulator to test its capabilities.
Artificial intelligence has officially entered the arbitration process. Last fall, the AAA launched its AI Arbitrator, a first-of-its-kind platform for document-only construction disputes. A Resolution Simulator, available in June, will use the same AI reasoning to generate simulated decisions for document-only commercial and construction disputes, and the AI Arbitrator will expand to other dispute types (not yet specified) later this year.
How does the AI Arbitrator work? The AI Arbitrator analyzes the parties’ position statements, extracts the parties’ claims for review, and receives exhibits and legal authority. The AI Arbitrator produces a case summary that both parties review for accuracy. A human arbitrator specially trained in the tool is assigned after the AI tool checks for human arbitrator conflicts. The human arbitrator evaluates that summary alongside party feedback, directs the AI Arbitrator to generate legal analysis and a draft award, and then revises and finalizes the decision. The human arbitrator issues and is responsible for the final award.
As the AI Arbitrator expands into additional industries, practitioners should consider whether any of their disputes are good candidates for AI-assisted resolution. For example, according to the AAA and ICDR’s assessment of the AI Arbitrator tool specifically, straight-forward, contract-driven disputes could lend themselves to AI Arbitration. Practitioners should be realistic about this particular tool’s limitations, with the AAA and ICDR finding it “not suitable” (at least currently) in more complex or subjective disputes involving live witnesses or complex factual issues.
Parties considering the AI Arbitrator should assess whether the dispute’s complexity and stakes suit AI-assisted resolution. Submissions should be organized with AI readability in mind, using clear headings, logically sequenced exhibits, and concise position statements. Parties should also familiarize themselves with each stage of the workflow where party input is solicited, particularly feedback on the AI-generated case summary. Parties can also use the Resolution Simulator, intended for single-party, non-binding use, to trial-run their dispute packages.
