Moving towards an AI Oriented Arbitration: Significance and Challenges

In the second decade of the twenty-first century, it has become common knowledge that litigation, although the most commonly preferred form of dispute redressal, is often time-consuming and expensive. As a result, the preference for Alternative Dispute Resolution (ADR) methods, such as mediation, negotiation, and conciliation, has become quite common. However, with the rising necessity of redressal of corporate matters pertaining to private entities, the rise of Arbitration as a form of ADR has been considered inevitable. Arbitration has been considered the biggest innovation in terms of dispute redressal for its private, speedy, and conclusive nature. Recently, a new question has emerged as to whether Arbitration, like all other professions, would be influenced by the advent of Artificial Intelligence (AI). This research paper primarily focuses on the significance and challenges of such an inclusion. It delves into the multiple pros of AI in arbitration, such as time-reduction, data compilation, pattern-oriented decisions, reduced influence, and minimal demerits, as well as the cons which may include the possibility of hacking, lack of human conscience and justice, and inability to provide a reason among many others. The paper attempts to recognize the possibility of AI as an arbitrator, the road ahead and the challenges faced with adoption of AI in ADR.