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There are 2 kinds of AI- Strong and Weak. Weak AI mimics the human abilities to think and reason. It does not learn on its own and uses only the pre-programmed human abilities to function. On the other hand, Strong AI can independently think and reason like humans.

They do use human capabilities pre-programmed but to create their reasoning.

A realistic and logical solution

Human beings have three mental parts: conscious, subconscious, and unconscious. The conscious part of the mind is the one we use to decide, but in our decision-making process, the subconscious and unconscious minds also play a role. An arbitrator is supposed to take a rational approach when making the judgment and award but there are chances of getting an impact on human thought and reasoning from the external world.

All 3 parts of the mind have an influential effect during decision making. This hampers the human rational approach. No such unfounded factors influence the AI programs. They are programmed to act autonomously using algorithms. The decision taken using AI is so much more rational than humans.

  • No unconscious control and cognitive biases

Cognitive biases affect humans. There will be times when determining the case in the evening where the arbitrator will be affected by the cases he dealt with earlier on the same day or the external environment.

Its decision-making approach can be affected. An example of cognitive biases is the anchor effect, in which there is a typical human propensity to rely on the first piece of knowledge obtained for subsequent decisions Human beings have a tendency towards such cognitive biases while they approach a decision.

AI programs have no outside effect and do not suffer from cognitive biases.

  • Time Effective-Arbitration Primary purpose

The primary aim of arbitration is to get a neutral third party to resolve disputes equally without undue costs or delays. The core aims of the Arbitration process are to save time and costs.

The use of AI in the arbitration proceedings will be a complement to the arbitration objective. Since AI is developed independently to think and reason, it can be used to reduce the burden of the individual involved in arbitration proceedings. The use of AI will automate legal research and data analysis time-consuming.

  • Removing Errors

Human Arbitrators can make mistakes in interpretation, translation, documentation, authority selection, decision making, etc. Using AI at various stages or in different tasks can help to eliminate the inefficiencies in the arbitration process.

It can identify blind spots and recommend suggestions for softening these blind spots to make the process efficient.

  • Outcome forecast

AI can be used to select the appropriate arbitrators and predict the outcome based on the information given, the documents submitted, and the arbitrator's reasoning.

  • Immediate Award Creation

In the present scenario, the parties must wait for the compliance of the award after passing the award.

AI will allow for an award to be implemented immediately. For example, in the event of a dispute over money, an award is passed that one party (A) must give a certain amount of money to another (B), then using AI, the sum is transferred immediately from A's bank account to B's bank account. AI can also give a recall to the concerned party and authorities at regular intervals for the compliance of the award.


AI systems are trained, and data sets are operated. AI has the potential to negatively affect the purpose of the Arbitration.

  • Enormous investment

Initial incorporation of AI in Arbitration will require a huge investment and time because training is needed to adjust with such dynamic technology. The development of AI systems is done to reduce the cost of the proceedings, but a huge amount of capital is required to develop such AI programs and intelligent algorithms which will automatically increase the price of such a system. If incorporated, this will prove cost-effective for the persons involved in arbitration soon.

  • Occupation

The purpose of AI development and usage is to reduce the burden on humans. But this has a direct impact on the employment rate as there will only be a requirement of a few people to make the AI system function. Besides, AI will be competent to do human-led work resulting in a reduction of the workforce.

  • Privacy Policy

In arbitration proceedings, confidentiality is one of the fundamental necessities. AI is based entirely on the intellectual algorithms and software programming developed by a programmer and selected few have full access to those algorithms which in the case could provide the final decision. Programming the software is prone to hacking. There is a possibility that the parties can compromise their confidential information by hacking. Any system update also poses the threat of viruses and other complex technical problems.

  • Failure to consider such a program

Because of a lack of logic, lack of accountability, a threat to confidentiality, and other such complications, the parties could not depend on the system's conclusion using the algorithms they lose confidence in the system.

There may be a danger that the programmers may not show the algorithms and how the method has arrived at a conclusion. It is a difficult situation to entirely rely on a non-human for adjudication.

  • Missing Flexibility

Every case in the arbitration is not the same, and if the decisions are taken by the ratio operating procedure and a standardized process for determining the case is the same then the lack of consistency is portrayed.

Each award is passed stating the reasons which helped to reach the conclusion. If there are only a few fixed algorithms, only a few combinations of judgments will exist, A rigid structure will thus be devised.

  • Error during algorithm definition

AI is developed by man-made programmers. There's a possibility of human errors while developing such intelligent algorithms. If such errors are entered in the code of the AI application by programmers, erroneous conclusion and other inaccuracies are likely to occur.

  • A realistic and logical solution
  • Pros
  • Cons

BY : Sunaina Jain

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