AI in Arbitration: New Guidelines for a Tech-Driven Future

TechnologyLitigation & DisputesImportant Updates

31 Mar

Introduction

The Chartered Institute of Arbitrators (Ciarb) recently published its "Guideline on the Use of AI in Arbitration (2025)" (the ‘Ciarb AI Guideline’).

The Ciarb AI Guideline provides practical guidance to practitioners and other participants in dispute resolution processes who wish to benefit from the responsible use of artificial intelligence (‘AI’).

This initiative reflects the Ciarb's commitment to embracing technological advancements while maintaining the integrity and fairness of the arbitration process.

Understanding AI in Arbitration

The Ciarb defines AI as “a machine-based systems that, for explicit or implicit objectives, infer from input data to generate outputs such as predictions, content, recommendations, or decisions that can influence physical or virtual environments” and an AI Tool as “a tool or platform which relies on, incorporates, or utilises some form of AI.”

The Ciarb AI Guideline comprises four parts. Parts I and II address the benefits of risks that the use of AI poses to the arbitral process and offer general recommendations on its use. The key role of the arbitrator is explored in Parts III and IV, which explore arbitrators’ powers to give directions and make rulings on its use by parties in arbitral proceedings, and the use of AI by arbitrators. It is also supported by model agreements and procedural orders.

Benefits and Risks of AI Integration

The Ciarb AI Guideline outlines several benefits of incorporating AI into arbitration, including its potential ability to improve the efficiency and quality of the arbitral process. Potential uses include legal research, data analysis, text generation, translation, interpretation, transcription, evidence collection, and case analysis. AI might also have a valuable role to play in promoting equality of arms, with the potential for AI Tools to support under-resourced parties.

However, dispute resolvers must also be aware of potential risks including the implications of the use of AI on the enforceability of an arbitral award, the potential threat that the use of AI poses to confidentiality, cybersecurity concerns, the risk that AI systems trained on biased data may perpetuate existing prejudices and lead to unfair outcomes, due process implications, and the so-called "black-box" problem – the nature of some AI algorithms can make it challenging to understand their decision-making processes, raising concerns about accountability.

Recommendations for AI Use in Arbitration

To mitigate risks and harness the benefits of AI, the Ciarb encourages parties and arbitrators to seek to understand any AI Tool that they wish to use by making reasonable enquiries to enable them to evaluate the potential benefits and risks.

Use of AI by Parties

Save where expressly prohibited by party agreement or applicable laws, rules or equivalent, the Ciarb AI Guideline notes that arbitrators have the power to give directions and make procedural rulings relating to the use of AI by the parties.

Disclosure may be key to the preservation of the integrity of arbitral proceedings. The Ciarb AI Guideline encourages arbitrators to consult the parties about their use of AI and impose, if appropriate, continuous disclosure obligations on them in respect of such use. Such transparency serves to protect and promote the integrity of the arbitral proceedings.

Use of AI by Arbitrators

Arbitrators are encouraged to use AI to enhance the arbitral process while ensuring that their judgments are based on a comprehensive evaluation of all evidence and arguments presented. Transparency in respect of the use of AI is also encouraged, with party consultation advised.

The Ciarb AI Guideline emphasises that arbitrators retain ultimate responsibility for all aspects of their awards and should not delegate their decision-making duties to AI tools. Independent verification of the accuracy of information obtained using AI is encouraged to minimise the risk that an arbitrator’s judgement will be distorted.

Conclusion

The Ciarb's AI Guideline serves as an important new resource to support the responsible integration of AI into arbitration, balancing technological innovation with the foundational principles of fairness and impartiality.

By adhering to these guidelines, arbitration practitioners can effectively leverage AI's advantages while safeguarding the integrity of the arbitral process.

This article is intended for information purposes only and provides a general overview of the relevant legal topic. It does not constitute legal advice and should not be relied upon as such. While we strive for accuracy, the law is subject to change, and we cannot guarantee that the information is current or applicable to specific circumstances. Costigan King accepts no liability for any reliance placed on this material. For further details concerning the subject of the article or for specific advice, please contact a member of our team.