Source: BW Legal World

BW Legal World features a discussion with legal experts on the significant limitations of using artificial intelligence in arbitration proceedings. While acknowledging AI's potential to streamline administrative tasks, such as document review and legal research, the experts express strong reservations about its capacity to replace human arbitrators in core decision-making functions. The primary concern raised is AI's inability to understand nuance, context, and the subtleties of human testimony. Arbitration often involves complex factual matrices and requires an appreciation of commercial realities and cultural contexts that current AI models are not equipped to handle. The lack of genuine comprehension means AI cannot replicate the sophisticated reasoning and judgment essential for a fair and just outcome.

Furthermore, the article highlights critical ethical and procedural challenges. The "black box" nature of many AI algorithms raises serious questions about transparency and the ability of parties to understand, and therefore challenge, the basis of a decision. This lack of explainability could undermine the principles of due process, a cornerstone of any legitimate dispute resolution mechanism. Experts also warn of the risk of inherent biases in AI systems, which are trained on historical data and may perpetuate or even amplify existing societal prejudices. The consensus among the featured experts is that while AI can be a valuable assistive tool, the quintessential human qualities of empathy, ethical judgment, and contextual understanding remain indispensable for the role of an arbitrator.