INTRODUCTION
Many technologies are crucial tools in the fast-paced, ever-evolving world we live in today. One of these is artificial intelligence, or AI, which has become an effective tool and revolutionizing nearly every other industry, including the legal sector. Alternative Dispute Resolution (ADR) is one area in the legal sector where AI has attracted a lot of interest. The process of solving matters and disputes outside the regular court is called ADR. It is of various types like Negotiation, Arbitration, and mediation. The world’s congested legal industry is always seeking new methods to help its overworked human workforce members. AI allows for unique and speedy access to research, invention, and legal resolution.[1] Online transactions are estimated to account for around one billion transactions each year, serving as a lie detector throughout the processes and achieving justice aims. ADR (Online Dispute Resolution) techniques are used in a global setting to resolve issues about transactions in a variety of circumstances, exclusively online. The development of ADR procedures is also significantly impacted by dynamic technology. The use of technology may enhance and facilitate the functioning of several different conflict resolution procedures. A program that can impersonate the human mind is Artificial intelligence (AI).[2] Making use of artificial intelligence’s technological advantages is an innovative approach to satisfying the requirement for quick resolution through alternative dispute resolution. It also brings up significant moral and legal concerns about matters like responsibility, prejudice, and openness. This blog examines the condition of alternative dispute resolution (ADR) in the era of artificial intelligence, as well as the possible advantages, difficulties, and future implications of ADR.
ARTIFICIAL INTELLIGENCE IN ADR’S OPERATIONAL MECHANISM
AI is a tool that the neutral can use AI can help with standard drafting, research, and document examination. AI may also be used to estimate results, assess damages, identify falsehoods, and suggest potential remedies. Humans thus can use it on an advising basis.
Artificial Intelligence can be impartial: In the latter method, after asking both sides to submit their best and last offer, the software would scan through its database to find which offer comes nearest to its model answer.[3] The parties would be encouraged to submit acceptable offers. By focusing on algorithmic fortes, this method stays away from arbitrary questions that may provoke it.
Artificial intelligence’s roles and importance in the business are better defined by its division into Weak and Strong AI. Weak AI concentrates on carrying out particular tasks, such as scenario analysis, research, and segregation.[4] An idea that mimics the human intellect is called strong AI. It is capable of making decisions in addition to being self-aware.[5] With further improvement and growth, AI may perhaps even outperform the human intellect. The use of artificial intelligence principles for the betterment of humanity is intended to speed up the resolution of disputes.
ADR THROUGH AI: ITS BENEFITS
- Time and cost-effective
Saving time over litigation is one of ADR’s objectives. Research and data analysis may be systematized by AI, relieving human workload. Once the AI is working, even with its substantial initial setup, it will be far less expensive than traditional human-based solutions.
- Documentation and drafting
ADR is a faster method than litigation, making AI especially effective for decreasing paperwork. AI can help in quickly reviewing and selecting relevant documents, as well as creating document summaries.
- No room to get biased
There is no room for bias and decisions made by an AI system would not be influenced by flaws in human nature like injustice, irrationality, or just having a rough day or being exhausted.
- Quick Creation of the Award
After the award is passed, the parties often have to wait for it to be fulfilled. AI will enable an award to be instantly complied with. AI can also remind relevant parties and agencies to fulfil the incentive regularly.
- Helps in Detection of Lies.
It is known that humans have less power to grasp the other person’s psychology as compared to AI technology which can be trained in detecting eye movements, body language, heart rate, and so on. Thus, AI having an upper hand, might be used as a lie detector throughout the proceedings, promoting justice’s purposes.
IMPLEMENTING AI IN ADR: CHALLENGES
- Enormous expenditure
Reducing the cost of proceedings is one of an AI’s primary goals; researching and testing these programs requires a significant initial financial investment. The expense of development would go up with the level of program intelligence.
- Substituting Lawyers
For legal practitioners, the possibility that technology, which was initially created to assist them, may eventually cost them their employment is alarming! For the AI system to work, fewer people would be required, and the number of mediators and arbitrators employed would decline.
- Privacy Issues
In ADR processes, maintaining the confidentiality of the information exchanged is essential. While a person can be relied upon to keep information private, anyone with the right skills may breach AI software and gain access to private information. Those who calibrate the program may also have complete access to it. In such a scenario, data protection and privacy rules would need to govern the application of AI.
- Insufficient Adaptability
An AI would apply the state’s general legislation and the facts from earlier processes, without considering the parties’ circumstances, feelings, or motivations. Because no two cases are alike, arbitrators may occasionally decide to depart from their earlier rulings. This isn’t the case with AIs, since they use standardized processes to identify the kind of cases they are dealing with and base their decisions on predetermined algorithms. There would be no room for growth and normal decision-making. A framework this rigid would result in a very small number of possible combinations of judgments and may even stop the steady advancement of rules of arbitration and mediation.
- Absence of Human Interaction
Parties may choose to have a human arbitrator who may persuade them by employing persuasive storytelling or emotional appeal. In ADR, there might be hundreds of possible scenarios. Humans are excellent negotiators; they know just how to see the situation, when and what questions to ask, etc. Some ADR tasks—such as comprehension and communication—require human intervention and cannot be fully substituted by AI.
ADOPTING A MIDDLE WAY OF RESOLUTION
AI has given rise to a revolution in the ADR sector. The benefits of AI are just too great to outweigh the drawbacks. Determining where to draw the line of involvement is an ongoing issue. AI will operate as a disincentive to the principles of arbitration if it is given full authority over the arbitration process. However, if artificial intelligence (AI) is shown to be a hoax, lawsuits would remain unanswered under the guise of a court system overwhelmed with cases. To make use of technology and maintain the fundamentals of arbitration, a middle ground must be chosen.
AI has the potential to support the arbitrator. Using Weak AI to streamline the workflow might result in a quicker settlement of conflicts. AI could successfully manage the admission of claims, gathering of arguments, in-depth investigation into the history of the conflicts, and potential arbitration awards, based on precedents and accessible data. Human arbitrators can manage efficient communication at the same time. AI can help with the necessary arbitrators’ selection process. Similarly, with the use of AI technologies, pertinent factual pieces, the parties agreed and contested viewpoints, and procedural background may be included to aid in the award’s formulation.[6] For the legal sector, a middle ground that combines inclusion and acceptance might prove to be quite advantageous. Artificial Intelligence (AI) has the potential to support the ADR, but it shouldn’t be permitted to take over entirely.
Adopting a global strategy that views AI as a helper rather than a boss might benefit India’s legal system. Similar to artificial intelligence, arbitration is still in its infancy in India; as such, studying and observing the interaction between the two would be fascinating.
CONCLUSION
Regardless matter how much AI is programmed to be dishonest, many of us believe that fairness is a special human ideal that will be extremely difficult to implement.
According to a certain philosophy, humans are less inclined to trust a computer-generated judgment, even when it is supported by obvious reasoning, and they are quick to assume that the computer is broken if their preferred option is not selected. Technology is advancing quickly, and we cannot stop it from having an impact on legal services. The wisest course of action would thus be to embrace this shift and purposefully use it for the advancement of the legal profession. AI aims to focus on making the work of solicitors easier, faster, more productive, and able to offer everyone excellent legal services rather than take the role of lawyers or jeopardize their livelihood.
Author(s) Name: Sonakshi Sharma (SVKM’s Narsee Monjee Institute of Management Studies, Navi Mumbai)
References:
[1] Jacques Bughin, ‘Artificial intelligence the next digital frontier’(McKinsey Global Institute, 25th June 2017)
< https://www.mckinsey.com/~/media/mckinsey/industries/advanced electronics/our insights/how artificial intelligence can deliver real value to companies/mgi-artificial-intelligence-discussion-paper.ashx> accessed June 2024
[2] Darrell M West, ‘What is Artificial Intelligence?’(Brookings Education Blog, 4th Oct 2018) accessed June 2024
[3] L.L.N. Network, ‘ADR and AI, boon or bane?’(Lexforti Journal,2021)< https://lexforti.com/legal-news/adr-and-artificial-intelligence/#Introduction> accessed June 2024
[4] Id.
[5] Khanzobair, ‘Arbitration through artificial intelligence: A foreseeable future or a fabricated fiction?’(USLLS ADR Blog, 25th September 2025)< https://usllsadrblog.com/arbitration-through-artificial-intelligence-a-foreseeable-future-or-a-fabricated-fiction/> accessed June 2024
[6] Roy Weinstein, ‘Compared to court proceedings, Benefits of Arbitration causing efficiency and economic (NY Resol, 2017) <https://go.adr.org/%20impactsofdelay> accessed June 2024
