ARTIFICIAL INTELLIGENCE IN ARBITRATION: OPPORTUNITIES AND LEGAL CHALLENGES
AUTHOR – VEDANG KAPOOR* & PROF (DR.) MANISH SINGH**
* RESEARCH SCHOLAR AT DR. RAM MANOHAR LOHIA NATIONAL LAW UNIVERSITY, LUCKNOW
** HEAD OF DEPARTMENT LAW AT DR. RAM MANOHAR LOHIA NATIONAL LAW UNIVERSITY, LUCKNOW
BEST CITATION – VEDANG KAPOOR & PROF (DR.) MANISH SINGH, ARTIFICIAL INTELLIGENCE IN ARBITRATION: OPPORTUNITIES AND LEGAL CHALLENGES, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 6 (9) OF 2026, PG. 277-287, APIS – 3920 – 0001 & ISSN – 2583-2344.
ABSTRACT
Artificial Intelligence has emerged to be a transformative tool in the field of Alternative Dispute Resolution (ADR), if we talk about particularly arbitrations, then by enhancing procedural efficiency, reducing cost, and giving faster results in resolution of disputes. The integration of AI-driven technologies like predictive analytics, natural language processing, automatic document review, and intelligent case management system has significantly changed the traditional framework of arbitral proceedings. AI has the capability to streamline the procedural activities, assist arbitrators in legal research, improve evidence analysis, and support online dispute resolution mechanisms in cross border dispute resolutions. Therefore, the arbitrators and advocates are adopting the use of AI based tools increasingly to address the growing complexity and numbers of commercial disputes.
Even after having such advantages, the use of AI in arbitrations raises certain legal, ethical and jurisprudential concerns. It raises questions regarding algorithmic biasness, transparency, accountability, confidentiality, cybersecurity, procedural fairness, and the preservation of natural justice principles. The absence of a strict regulatory framework governing AI in arbitration further complicates the issues related to liability and enforceability of arbitral awards which are likely to be influenced by the automated decision-making systems. Secondly, excessive reliability upon AI could become a threat to the human centric arbitration, where judicial reasoning, discretion and contextual interpretation remain essential components of dispute resolution.
This research paper critically examines the opportunities and legal challenges linked with the application of AI in arbitration. The paper analyzes the role of AI within domestic and international arbitration framework, with reference to India and other technologically advanced jurisdiction. The study would further explore that whether the existing arbitration laws, including the Arbitration and Conciliation Act, 1996 and internation arbitration principles, have adequate resources regarding the use of AI-assisted arbitral processes. By studying the benefits and uses with its risk of AI integration, the paper seeks to propose a balanced legal approach that promotes technological innovation while safeguarding fairness, transparency, and procedural integrity in arbitration proceedings.
KEYWORDS: Artificial intelligence (AI), Arbitration, Alternative Dispute Resolution (ADR), Online Dispute Resolution (ODR), Procedural integrity, Legal and Ethical implications, AI-driven technologies, Arbitration and Conciliation Act 1996.