Artificial intelligence (also known as “AI”) is here to stay in an era where big data is ubiquitous and computers are getting more powerful. A computer scientist, John McCarthy, first used the term artificial intelligence in 1956. He defines artificial intelligence as machines performing tasks requiring human-like intelligence. Machines can replicate human intelligence and do tasks humans cannot. This leads to advancements in different fields.

Artificial intelligence has an impact on business methods and technologies like blockchain. It also impacts how transactions are made using services like Bitcoin and smart contracts. It also addresses the disputes brought up and resolved. It is not believed that artificial intelligence portends anything in the future. Several nations have begun integrating AI technologies into their procurement processes.

Arbitration is just one of the many professions and industries that artificial intelligence is quickly changing. The same principles that apply to human intelligence also apply to AI. It is gradually making its way into international arbitration as well as legal practice.

In recent years, growing interest has been shown in how AI might expedite and enhance the arbitration process. The potential of AI lies in robot arbitrators replacing human arbitrators. Implementing AI technology in arbitration aims to improve the process’s effectiveness and standards. To achieve this goal without human intervention, the International Commercial Arbitration community must make technological efforts and reach an international agreement.

USE OF AI IN ARBITRATION

AI technologies are already impacting the legal field. They are becoming more popular, especially in machine learning and natural language processing. Artificial Intelligence is transforming the way lawyers think, work, and communicate with clients as a result of recent technological advancements.

Lawyers have used AI tools like LexisNexis and Google for years. Experts believe it is time to investigate how this technology can improve arbitration. It can increase efficiency and reduce costs, among other benefits.

● Instantaneous meeting scheduling: This artificial intelligence tool helps the case’s arbitrators and parties arrange meetings. The parties find it easier to set up all of the meetings and hearings with the aid of this application. Put another way, it associates party agendas, such as scheduling meeting times, locations, etc., with minimal human intervention.

● Selection of arbitrators: Lowering the initial hurdles in the arbitration process can significantly improve its quality. An AI model for arbitrator selection is an effective way to achieve this. The use of AI eliminates the potential for bias that often arises when parties appoint human arbitrators. It also reduces the likelihood of repetitive arbitrators and those who lack the necessary information being selected.

● Document Analysis: Examining documents can be costly in resolving disputes. Usually, the documents are irrelevant. AI technologies are used by e-discovery and document review platforms to solve those problems. Large language models, intuitive AI, and “continuous active learning” technology expedite the disclosure and review process. These platforms also increase review accuracy, which is most important. This is accomplished by the AI continuously re-ranking unreviewed documents based on additional lawyer input, using samples of documents reviewed by lawyers, and self-training to identify critical issues.

● Reduces uncertainty: Artificial Intelligence could be highly relevant regarding uncertainty in arbitral proceedings. Analyzing the arbitral award made and providing the legal basis for the arbitral awards helps dispel any doubts. AI advises on legal arguments in past cases. It helps readers understand how arbitrators previously resolved conflicts and handled damages. Artificial Intelligence has made significant contributions to predicting various aspects. There are multiple factors to consider in this situation. These factors include the chance of overall success and the specific decision-maker involved. Another factor to consider is the potential amount of damages that could be awarded. It is also important to take into account the incurred costs. Additionally, information about the other party’s prior experience in a dispute should be considered.

● Legal research and drafting: AI-powered platforms are designed to analyze legal text and promptly present applicable statutes, precedents, cases, and guidelines. Furthermore, these platforms’ integrated generative AI tools can locate and verify case citations as well as the judicial consideration they have received. Attorneys can automate more tasks in legal research. They can create legal notes and respond to complex legal queries. This is possible with advanced search engines and text-generation tools.

It is already possible to use generative AI to create text that looks like essays, and it will soon be the case that legal drafting uses it extensively. Draft witness statements are now increasingly being made using AI from transcripts or notes from witness interviews. Since editing automatically generated documents is far faster than creating them from scratch, it may be possible to lower the expense of the evidence-gathering aspect of the legal process.

AI AS ARBITRATORS AND POTENTIAL CHALLENGES

Most people agree that AI systems have the potential to be more precise and effective than human arbitrators. The accuracy rate in a study on the predictability of AI-generated decisions by the European Court of Human Rights (ECHR) was found to be 79%. Whereas when AI was used to predict decisions made by the US Supreme Court, the accuracy rate was discovered to be 70.2%.

Two provisions deal with the arbitrators in the New York Convention on Recognition and Enforcement of Arbitral Awards, 1958, namely:

Article I (2): Besides the awards given by arbitrators explicitly chosen for each case, the term “arbitral awards” also refers to decisions rendered by permanent arbitral panels that the parties have submitted to.

Article V (1) (b): The refusal of recognition and enforcement of the award can occur when the party seeking recognition of the award was not adequately informed about the arbitrator’s appointment or the arbitration proceedings or when the party was unable to present their case.

There is no mention of the requirement that arbitrators be humans rather than machines in either of these articles. The person who delivers an arbitral award is referred to as the arbitrator.

The use of AI arbitrators to render arbitral awards that are enforceable under the New York Convention is not prohibited by any clause in the convention. The same is the case with the 1966 ICSID Convention, which does not expressly or impliedly bar the use of AI arbitrators. Additionally, the arbitral award will be recognized and enforced when the parties to a dispute have explicitly stated their desire to appoint an AI arbitrator through an agreement or other legally recognized means.

The situation of AI arbitrators under national laws is different from international arbitration. The laws of certain nations handle it uniquely. The laws of Portugal, France, and the Netherlands state that an arbitrator must be a natural person with full capacity to act as an arbitrator. Hence, it is abundantly evident that AI is not qualified to serve as an arbitrator. Other countries have different requirements for being an arbitrator, including: – Having a specific number of years of experience as a judge or lawyer. – Possessing specialized knowledge in a specific area of law. – Being fully capable of acting as an arbitrator, which means not being a minor, bankrupt, or incapacitated. All these specifications indicate that only human beings can be arbitrators.

AI lacks emotional intelligence. It might not understand intricacies. It may be unable to provide “fair” or “merits-based” results. This means there may be a higher chance of purely “correct” legal results, even though they may not be “right” for the parties. Of course, there is disagreement on this point as well, such as the degree to which arbitrators ought to favour applying the strict letter of the law when resolving legal disputes.

Additionally, the AI system may encounter difficulties when dealing with incomplete data. Information monopolies for a specific group of people or data confidentiality contribute to the information gap. These elements contribute to the ineffectiveness of the process of deploying AI technology.

Various tasks are involved in an arbitration procedure, including preparing the claim and defence statements, preparing and filing paperwork, arguing, cross-examining, and more. Could AI carry out all of these tasks without the need for human assistance? Unfortunately, AI technology has not yet reached this level of development. To be useful in the field of arbitration, AI must be capable of performing several crucial tasks. Arbitration systems have many tasks. They process and analyze lots of data. They relate facts to the law. They understand the context of disputes. They present arguments and cross-examine witnesses. Because of this, it is unlikely that any technology can do all of these tasks with complete accuracy.

There are concerns about allowing machines to make decisions in the field of public policy. This could lead to challenges in enforcing decisions made by AI arbitrators. Additionally, it is unclear how AI would react to hostile or abusive behaviour during proceedings. It is also uncertain whether an AI arbitrator could ensure due process. The Silicon Valley Arbitration and Mediation Center (SVAMC) has guidelines for AI use in arbitration. According to these guidelines, arbitrators are not allowed to delegate any part of their mandate to AI tools. The guidelines aim to mitigate the possibility of any potential risks associated with the use of such tools. This rule will especially apply to the arbitrator’s decision-making responsibilities.

NEED FOR LEGISLATIVE FRAMEWORK AND THE INDIAN PERSPECTIVE

The Indian government promotes artificial intelligence and its applications. However, there are no specific laws in India regarding AI, big data, or machine learning. The government’s goal is to provide innovative AI solutions in India. These solutions will be customized to meet the country’s specific needs. The aim is to catch up with global advancements in AI. India’s entry into the AI sector has been delayed, but it can still be an advantage. Laws, regulations, and policies are being created to regulate and control artificial intelligence. These efforts are ongoing, and they are important for ensuring that AI is used safely and responsibly.

A report titled ‘Designing the Future of Dispute Resolution (the ODR Policy Plan for India), 2021’ was released by NITI Aayog. The committee recognized the benefits of online dispute resolution. They also acknowledged the role of artificial intelligence in facilitating it. The report acknowledged AI’s significance in creating India’s online dispute resolution system. AI can be used to develop such a system with various advantages, such as removing human bias in the dispute resolution process. According to the report, the objective of ODR is to supplement the current dispute resolution model rather than entirely do away with it. The ODDRP model from Zhejiang is one example. It includes ICT tools like cloud computing and artificial intelligence. Artificial intelligence is used here to introduce an effective offline docking mechanism. This mechanism is for litigation and dispute settlement.

The judiciary has spearheaded some significant modifications to the online dispute resolution system. Several initiatives have been launched under the eCourts Mission Mode Project. The online version of Lok Adalat is now called e-Lok Adalat. The Hon’ble Supreme Court has utilized artificial intelligence effectively. They used the SUVAS software to translate court documents into regional languages. SUVAS translates orders and judgments from English into nine languages.

CONCLUSION

Recent claims that AI will replace all lawyers are greatly exaggerated. However, it is plausible to conclude that AI will revolutionize legal services. Furthermore, it will also revolutionize other industries, lowering costs and increasing productivity.

To make this happen, lawyers and legal professionals must adopt the change. They should learn new skills, develop strategies, and use AI tools. They should understand how AI works and establish controls and safeguards. Establishing safeguards is crucial. They guarantee client confidentiality and prevent misuse of sensitive information. All data used in legal drafting and generative AI submissions must be fact-checked. The data should be based on credible sources.