Artificial Intelligence And Online Mediation In Consumer Dispute Resolution: Opportunities And Regulatory Concerns
D. Asenthamani, Assistant Professor in Chennai Dr. Ambedkar Government Law College, Pudupakkam.
ABSTRACT
The rapid expansion of digital commerce and online consumer transactions has significantly transformed the nature of consumer disputes, necessitating innovative approaches to dispute resolution. Traditional consumer redressal mechanisms, while essential for protecting consumer rights, often face challenges such as procedural delays, increasing case backlogs, geographical barriers and litigation costs. In response to these concerns, Online Dispute Resolution (ODR) has emerged as a promising alternative, integrating technology-driven solutions to facilitate efficient and accessible dispute settlement. More recently, the incorporation of Artificial Intelligence (AI) into online mediation processes has introduced new possibilities for enhancing the effectiveness of consumer dispute resolution systems. The growing role of Artificial Intelligence in online mediation and its potential to strengthen consumer justice in the digital era. It explores how AI-powered tools can assist in complaint management, case screening, negotiation support, predictive analysis and settlement facilitation, thereby improving the speed, accessibility and cost-efficiency of dispute resolution. The study further analyses the legal framework governing consumer protection, mediation, digital governance and data protection in India, with particular reference to the Consumer Protection Act, 2019, the Mediation Act, 2023 and the Digital Personal Data Protection Act, 2023. While AI-driven online mediation offers significant opportunities for expanding access to justice and reducing institutional burdens, it also raises important regulatory and ethical concerns. Issues relating to algorithmic bias, lack of transparency, accountability, data privacy, cybersecurity and procedural fairness pose substantial challenges to the legitimacy and reliability of automated dispute resolution systems. Through a doctrinal analysis of legal provisions, policy developments and emerging international practices, the paper argues that the successful integration of AI into consumer dispute resolution requires a balanced regulatory framework that promotes technological innovation while safeguarding consumer rights and principles of justice.
Keywords: Artificial Intelligence, Online Mediation, Consumer Dispute Resolution, Online Dispute Resolution (ODR), Consumer Justice.
