AI - Powered Dispute Resolution (ODR 2.0) For E- Commerce Corporations On Small Claims India Vs. Global Jurisdictions (US, China, Europe) A Comprehensive Literature Review
- IJLLR Journal
- Nov 20
- 2 min read
Kirubakaran S, LLM, Christ University, Bangalore
ABSTRACT
Online Dispute Resolution (ODR) has emerged as a trans-formative mechanism for efficiently resolving disputes in the rapidly expanding e- commerce sector. The increase in digital transactions has led to a simultaneous rise in small claims disputes including defective products, payment issues, and delivery delays. Traditional court systems struggle with backlog and procedural delays that disproportionately affect consumers and small to medium enterprises (SMEs). AI-powered ODR platforms offer a scale-able, accessible, and cost-effective alternative that incorporates advanced technologies such as artificial intelligence, machine learning, natural language processing, and block-chain to automate case management, support negotiation, and facilitate fair settlements.
This comparative study critically examines AI-driven ODR frameworks deployed in India, the United States, China, and Europe, focusing on their legal and regulatory frameworks, technological capabilities, enforcement mechanisms, consumer protections, and ethical governance. India’s evolving digital legal landscape and multilingual AI tools aim to widen justice access despite connectivity challenges. The US model integrates AI with human mediation under decentralized state-level regulations, emphasizing user- friendly interfaces and payment system integration. China leads in judicial digitalization with Internet Courts and heavily AI-supported negotiation, supplemented by block-chain for evidence integrity. Europe anchors its AI- ODR in a comprehensive regulatory environment prioritizing transparency, data protection, and fundamental rights while encouraging ADR entity involvement.
The analysis underscores common challenges including digital literacy gaps, jurisdictional complexities, enforcement of AI-generated decisions across borders, data privacy concerns, and potential biases in algorithmic outcomes. Despite these hurdles, AI-powered ODR holds great promise to democratize legal recourse for millions of e-commerce consumers globally, reduce judicial burdens, and enhance consumer trust.
Keywords: Online Dispute Resolution, Artificial Intelligence, E-commerce, Small Claims, Consumer Protection, Block chain, Machine Learning, Legal Technology, Access to Justice, Cross-border Disputes.
