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The Digital Equilibrium: Governing AI, Safeguarding Due Process, And Charting The Future Of International Arbitration




Anurag Nair, Nirma University


ABSTRACT


The foundational promise of international arbitration has always rested on three pillars: providing quick, inexpensive, and equitable trials before an impartial tribunal, preserving party autonomy, and maintaining minimal involvement from state judiciaries. For decades, this model ensured arbitration remained the preferred method for resolving global commercial disputes. However, the acceleration of global commerce, the exponential rise in data volumes, and the corresponding cost and duration of complex proceedings have strained the "quick and inexpensive" mandate. In response, the field of Alternative Dispute Resolution (ADR) has turned to technology, primarily Artificial Intelligence (AI), as the essential catalyst for renewed efficiency.


The integration of AI into this deeply traditional, human-centric process is the defining tension of modern arbitration. While technologies promise to save party and counsel time (cited as a primary driver by 54% of practitioners) and achieve cost reduction (44%), this enthusiasm is heavily tempered by profound ethical and procedural concerns—chiefly, the risk of errors and bias (cited by 51% as the main obstacle). This divergence between commercial demand and legal integrity mandates a clear governance framework.


This analysis explores the technological revolution currently reshaping international arbitration, focusing on the essential mechanisms required to balance efficiency with fairness. We will examine the applications of AI in procedural workflows, analyze the critical risks associated with algorithmic bias, and detail the emerging global governance efforts—from institutional soft law (CIArb, AAA-ICDR) to binding legislation (the EU AI Act)—that seek to ensure that AI remains an enhancement to the human arbitrator’s expertise, not a replacement for independent judicial judgment. The future of arbitration lies not in wholesale technological adoption, but in achieving a precise digital equilibrium.




Indian Journal of Law and Legal Research

Abbreviation: IJLLR

ISSN: 2582-8878

Website: www.ijllr.com

Accessibility: Open Access

License: Creative Commons 4.0

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All research articles published in The Indian Journal of Law and Legal Research are fully open access. i.e. immediately freely available to read, download and share. Articles are published under the terms of a Creative Commons license which permits use, distribution and reproduction in any medium, provided the original work is properly cited.

 

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The opinions expressed in this publication are those of the authors. They do not purport to reflect the opinions or views of the IJLLR or its members. The designations employed in this publication and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of the IJLLR.

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