Originally from The American Review of International Arbitration (ARIA)

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In recent years, international arbitration has been challenged to confront realities ignored in the past, as was the case with its intersection with disability, or the introduction of electronic evidence.  And while the advent of modern digital technologies is rampant, it has not always been unclear in what manner such technologies have a meaningful, as opposed to a trivial/managerial, effect on arbitration. Some inroads are certainly evident. By way of illustration, blockchain technology has facilitated the automatic execution of critical clauses in complex transnational contracts, thus decreasing transaction costs. It has never been claimed, however, that smart contracts making use of blockchain technology require changes to existing contractual regulation.  Contract law remains unchanged but is now enhanced through a new set of tools. The impact from smart contracts on arbitration is obvious. Since the arbitration agreement is usually (although not always) imbedded in a contract, its incorporation into a blockchain does not alter the legal nature of the agreement to arbitrate; rather, it may well be that the code facilitates arbitral proceedings when any of the parties triggers the arbitration clause without any need for other formal requirements.

Artificial intelligence (AI) is piped to make a much greater impact on arbitration, as opposed to blockchain technology. It is suggested that AI makes arbitration more accessible, neutral, and efficient. AI systems are generally used for administrative tasks; however, the emergence of advanced systems can predict the outcome of cases through the process of legal data and even lead to arbitral awards.  While these systems are utilized to better serve the increasing number of disputes that end up in arbitration, their use raises serious legal as well as ethical challenges, especially as they are slowly introduced in the arbitral decision-making process. The absence of the human factor, the lack of transparency and clarity caused by the ‘Black Box,’ the bias and discrimination of the algorithm, the lack of clear accountability, and the misuse of personal data are only some of the concerns that are often brought up during the discussion of AI systems in arbitration.  This paper will address the different ways AI is currently used in arbitration, the ethical concerns that arise from its use and its introduction to arbitral decision-making, and the regulatory and legal framework that governs AI in arbitration.