The undergoing technical revolutions have dwarfed the industrial revolution in more than one way. The advent of Artificial Intelligence (AI) is affecting the legal industry as well, with the chance of a digital judge arriving in the upcoming years. However, law firms are already experiencing the effects of AI on arbitration.
Generally speaking, humans create billions of disputes each year. And everyone wants their disputes to be settled in a minimal amount of time. However, in the current judicial scenario, it is impossible. In this case, an AI-enabled technology that can replace or modify the human-based resolution processes is a welcome change.
How AI is impacting Arbitration?
Even though we are far from AI taking complete charge of an arbitration process, AI has started to act as a Trusted Assistant to International Arbitration.
AI-backed recording software can record the hearing process to provide real-time transcripts of the proceedings. It can not only record voices, but also recognize accents, voices, and languages to provide better identification to all parties involved. If all goes smoothly, there might not be any need for court reporters and transcription service providers in the future. In the case of international matters, translators help interpret dialogues and translate important documents associated with the matter. However, the effect of AI can help reduce the time and cost associated with translation.
If the parties involved fail to agree on an arbitrator, AI may assist in appointing arbitrators after considering the associated variables. It can aid in selecting an appropriate arbitrator for a particular kind of dispute after analyzing the past cases handled by the arbitrators and which one of them has experience with the present dispute.AI can identify any potential conflicts and ensure no problems arise with the proceedings. AI can choose an arbitrator a data-backed process from an intuitive human process.
Arbitration Award Drafting:
Arbitrators spend much of the time drafting standard sections for the arbitration award. AI can automatically capture essential data associated with the dispute to save cost and time for all parties involved.
AI tools can analyze patterns to predict lawyers how to tackle a case- whether to go for arbitration or settle the matter outside the legal framework. Additionally, analytics can aid in legal academic research, decide compensation, and do other predictions.
Jurimetría, the legal prediction tool belonging to Wolters Kluwer, can come up with the most suitable procedural strategy for the success of the case, through interactive graphic indicators, based on the cognitive analysis of millions of judicial decisions.
Replacing Human Arbitrator:
AI can replace human arbitrators completely with enough modifications. Although, the decisions, in this case, will be based solely on the algorithms and the human touch required in sensitive manners may be missed. Simply put, even though practical approach requires an experienced arbitrator, for countries with millions of disputes, will surely benefit from the AI-backed arbitration.
As a matter of fact, appointing a human arbitrator paired with an AI-enabled system can make the whole process faster. The AI can manage and analyze all relevant documents while the arbitrator can pass the final award.
Summarizing, and Analyzing Arguments and Evidence:
The efficiency of an AI-enabled system to analyze and summarize large documents is much larger than that of human capabilities. AI can quickly analyze important documents and pass them on to the arbitrator to conclude the matter.
Effect of AI in Arbitration:
The positive effects of AI on legal matters are endless. It can reduce the load off the legal system and the people involved by resolving matters quickly. The judiciary of democracies around the world is crippled with a large number of pending cases and legal matters. AI can provide a fresh perspective when it comes to handling all those issues swiftly.
Even though arbitrators are expected to stay impartial, external factors can affect their judgment during the final award delivery. However, AI stays impartial and unaffected to any outside stimuli.
Arbitration is expected to be a time-effective process. However, with the human element attached, it is not always possible to stick to time constraints. The use of AI in the arbitration proceedings can save both parties time and money. AI can also be used to automate legal research and legal data analytics.
Well, no matter what, we think AI is going to bring a swift change into arbitration soon. Share your thoughts with us.