Artificial Intelligence in International - Arbitration
Artificial Intelligence in International - Arbitration
Annabelle O. ONYEFULU*
The emergence of the global pandemic has propelled the increased usage of artificial intelligence
(Hereinafter referred to as ‘AI’) in the workplace. Technological advancement in the legal
environment, evident in such functionalities as digitalization, blockchain, and machine learning,
amongst others, have significantly affected international arbitration. The application of these
technologies may promote efficiency, cost, and speed on the one hand, whilst perhaps, violating
the current regulatory frameworks in international arbitration on the other. Accordingly, this
research article undertakes a brief analysis of the future of international arbitration vis-à-vis the
introduction of new technologies, including an evaluation of the possibility of replacing human
arbitrators with AI arbitrators. Attention is paid to the public policy requirements and ethical
issues that may arise therefrom.
Keywords: Artificial Intelligence (AI), International Arbitration, AI Arbitrators, Technology, Public
Policy, Ethical Issues
1 INTRODUCTION
There is no universally accepted definition of the term ‘artificial intelligence (AI)’;
it has been variously defined by several authors, scholars, scientists, and mathema-
ticians, amongst others. John McCarthy defined the term as ‘the science of
creating, developing and use of intelligent machines, software, data processing
machines amongst others to analyse macro data using algorithms’.1 Ryan Calo
defined it as ‘a process which creates a machine that consists of a well-designed and
analytic approximation of human and animal cognition’.2
The use of AI-based technologies in the twenty-first century, especially in our
everyday lives, cannot be overemphasized. Following the emergence of the global
pandemic in 2019, technological advancement gained speed as it became evident
*
LLB, BL, LLM, ACIARB UK, Doctoral Researcher, Oxford Brookes University.
Email: [email protected].
1
John McCarthy, What Is Artificial Intelligence? (2007), http://jmc.stanford.edu/articles/whatisai/whati
sai.pdf (accessed 14 Feb. 2022).
2
Ryan Calo, Artificial Intelligence Policy: A Primer and Roadmap (2017), https://ssrn.com/abstract=
3015350 (accessed 14 Feb. 2022).
Onyefulu, Annabelle O. ‘Artificial Intelligence in International Arbitration: A Step Too Far?’. Arbitration:
The Int’l J. of Arb., Med. & Dispute Mgmt 89, no. 1 (2023): 56–77.
that business transactions, legal cases, arbitral proceedings, academic classes, and
even yoga lessons can all be done virtually. The development of science and
technology applications during the pandemic has significantly affected international
dispute resolution, thereby resulting in some foreseeable transformations in inter-
national arbitration. The possibility of including technology in international arbi-
tration has engaged scholars for quite some time. Whereas some scholars have
embraced the fact that parties, counsel and arbitrators are in dire need of such
inclusion, others are vehemently opposed to this.3 The fact remains, however, that
humans are constantly looking for ways to make their lives somewhat easier, hence
the constant need to develop and advance in technology.
Foreseeable transformations proposed by AI include (but are not limited to)
the application of algorithms in the arbitral process and the replacement of human
arbitrators with AI arbitrators.
The replacement of human adjudicators with AI adjudicators already exists in
some countries.4 Some jurists have contended that this is indeed a welcome
innovation, as AI Arbitrators can produce expert decisions in human-readable
form which will be transparent and devoid of bias.5 Some other jurists are against
this as they contend that AI judges will lack the most important element in their
decision which is judicial persuadability.6 This debate will be extensively discussed
in this research article.
3
H. Eidenmüller & F. Varesis, What Is an Arbitration? Artificial Intelligence and the Vanishing Human
Arbitrator (2020), https://ssrn.com/abstract=3629145 (accessed 14 Feb. 2022).
4
For Example, Estonia has developed an AI judge which is capable of adjudicating small claims cases
with a monetary jurisdiction of about 7,000. Also, China has digitalized courts and AI judges as the
head adjudicators. See Eric Niiler, Can AI Be a Fair Judge in Court? Estonia Thinks So, WIRED MAG.
(25 Mar. 2019). See https://www.wired.com/story/can-ai-be-fair-judge-court-estonia-thinks-so/
(accessed 26 Apr. 2022). See also Beijing Internet Court Launches AI Judge, China Daily (2019), http://
www.chinadaily.com.cn/a/201906/28/WS5d156cada3103dbf1432ac74.html (accessed 26 Apr. 2022).
5
Richard E. Susskind, Expert Systems in Law: A Jurisprudential Approach to Artificial Intelligence and Legal
Reasoning, 49 Mod. L. Rev. 168, 173 (1986).
6
Andrew C. Michaels, Artificial Intelligence, Legal Change, and Separation of Powers, 88 U. Cin. L. Rev.
1083 (2020).
7
Christine Sim, Will Arbitration Take over Arbitration?, 13(1) Asian J. Int’l Arb. 1–14 (2018).
8
Young-Yik Rhim & Kyung Bae Park, The Applicability of Artificial Intelligence in International Law, 12(1)
J. East Asia & Int’l L. (2019), http://dx.doi.org/10.14330/jeail.2019.12.1.01 (accessed 14 Feb. 2021).
58 ARBITRATION: THE INT’L J. OF ARB., MED. & DISPUTE MGMT
scholar of law, has posed a question: ‘If AI advances to the point where it can
adequately mimic judicial opinion writing, should we accept an AI judge?’9 This
raises a bone of contention in the entire legal community, including practitioners
of forms of dispute resolution such as arbitration. Some jurists welcome the
prospect of AI judges with open arms, while others are vehemently opposed to
such an innovation.
Professor Vodoh himself has expressed his interest in welcoming this change
in the legal community. He expressly stated that; ‘If a system proposes change and
it is seen by members of that system as a form of development to that system, it
should be ACCEPTED rather than resisted’.10 Some scholars have criticized this
opinion, contending that a judgment is said to be reasoned if there is an element of
judicial persuadability which is derived from factual legal arguments presented by
the parties.11 They point out that an AI judge or arbitrator lacks human feelings
and cannot be persuaded, and that no matter how the software or programme is
designed there would necessarily be a huge problem in deciphering the factors that
would persuade an AI judge or arbitrator.12 Put another way, this means that one
of the elements in determining who can be an arbitrator is the ability of the person
(or robot) to be judicially persuaded. Thus, this research article proceeds by asking
the million-dollar question; who can be an arbitrator?
9
Eugene Volokh,Chief Justice Robots, 68 Duke L.J. 1135, 1138 (2019).
10
Ibid.
11
Michaels, supra n. 6.
12
Emily Berman, Individualized Suspicion in the Age of Big Data, 105 Iowa L. Rev. 463, 502 (2020).
13
Article 11(2) UNCITRAL Model Law.
14
Article 13(4) ICC Rules.
15
Section 18 Arbitration Act 1996.
16
Article 11 UNCITRAL Model Law.
A STEP TOO FAR? 59
and who is duly appointed by parties, their appointing authority or the court.17
Article 3 of the Scottish Rule of Arbitration defines an arbitrator as ‘a sole
arbitrator who must be an individual18 and such person must pass the eligibility
test which includes: necessary qualification, impartiality and independence’.19
Article 11 of the United Nations Commission on International Trade Law
(UNCITRAL Model law) impliedly provides for arbitrators to be natural persons.
It provides that a person shall not be enstopped from representing parties as an
arbitrator by virtue of his/her nationality.20 It is in doubt if an intelligent machine
can have a nationality. According to the law of most states, there are only two
types of legal entities with nationalities: natural persons and juridical persons.21
Nonetheless, parties or their appointing authority may appoint arbitrators subject
to the contract. The parties can state the procedure for appointing arbitrators and
the number of arbitrators to be appointed. It is important to note that if this
procedure is not adhered to, a party may request that the court steps in.22 It is
worthy of note that the requirement for appointment of arbitrators under the
UNCITRAL model law remains: qualifications, impartiality and independence.23
Furthermore, Article 13 of the International Chamber of Commerce (ICC)
rules also impliedly provides for natural persons as proposed arbitrators, because the
nationality and residence of a proposed arbitrator act as criteria for the appointment
of an arbitrator.24 The court, under this rule, in appointing a sole arbitrator must
appoint an arbitrator with a different nationality and/or residence from the parties
unless the parties expressly agree otherwise.25 The ICC rules also state the basic
requirements to be qualifications, impartiality and independence.26 Article 6 of the
London Court of International Arbitration (LCIA) rules also refers to the nation-
ality of arbitrators as a criterion for appointment as the presiding arbitrator27 or
emergency arbitrator.28 This inherently means that an arbitrator is a person in law
capable of having a nationality and is eligible (that is, qualified according to the
17
Article 1450 Code of Civil Procedure of France.
18
Article 3.1 Scottish Short Form Arbitration Rules 2012, s. 8 Arbitration (Scotland) Act 2010.
19
IBA Guidelines on Conflicts of Interest in International Arbitration, Part I (2014) n71, Art. 3.8
Scottish Short Form Arbitration Rules 2012.
20
Article 11 UNCITRAL Model Law.
21
Elvia Arcelia Quintana Adriano, The Natural Person, Legal Entity or Juridical Person and Juridical
Personality, 4 PSJL 5 (2015). See https://elibrary.law.psu.edu/cgi/viewcontent.cgi?article=1117&con
text=jlia (accessed 21 Mar. 2022).
22
Article 11(4) UNCITRAL Model Law.
23
Article 12 UNCITRAL model Law.
24
Article 13 ICC Rules.
25
Article 13(5) &(6) ICC Rules.
26
Article 14 ICC Rules.
27
Article 6 LCIA Rules.
28
Article 9B LCIA Rules.
60 ARBITRATION: THE INT’L J. OF ARB., MED. & DISPUTE MGMT
29
Sim, supra n. 7, at 3.
30
Ibid.
31
Ibid. Gülüm Bayraktaroğlu-Özçelik & Ş. BarışÖzçelik, Use of AI-Based Technologies in International
Commercial Arbitration 9 (2021), https://ejlt.org/index.php/ejlt/article/view/814/1033 (accessed 14
Feb. 2021).
32
Article II(2) New York Convention provides that ‘The term “arbitral awards” shall include not only
awards made by arbitrators appointed for each case but also those made by permanent arbitral bodies to
which the parties have submitted’.
33
Sim, supra n. 7, at 3.
34
Bayraktaroğlu-Özçelik & BarışÖzçelik, supra n. 31, at 9.
35
Ibid.
36
Article IV(1)(a) New York Convention 1958.
37
Article 31 UNCITRAL Model Law.
A STEP TOO FAR? 61
Thus, since an AI tool cannot produce a written signature, it can be inferred that
an AI arbitrator cannot render a final and binding arbitral award.38
Conversely, some other jurists are of the opinion that having human arbitra-
tors alongside an AI arbitrator may solve the problem of admissibility of the arbitral
award, and issues resulting therefrom such as authentication and signature.39
Adopting this system will, however, pose unanswered questions such as; who
becomes the umpire if there are two human arbitrators and an AI arbitrator.40
Where there are conflicts in decisions or opinions of arbitrators, how will the
opinion of the AI arbitrator be explained?41 If two AI arbitrators are appointed and
one human arbitrator, will the authentication of only one arbitrator suffice?42
Many other such questions will arise. However, the creation of a distinctive
mark or stamp for AI arbitrators may solve the issue of signatures.43
Consequently, in the event that a human arbitrator is paired up with an AI
arbitrator, signature might not necessarily be an issue.
38
Bayraktaroğlu-Özçelik & BarışÖzçelik, supra n. 31, at 9.
39
Epaminontas E. Triantafilou, Non-lawyer Arbitrators and the Deliberative Balance of International Arbitral
Tribunals, TDM 7 (2016).
40
Sim, supra n. 7, at 4.
41
Ibid.
42
Ibid.
43
Ng (Huang Ying) & Benedetti del Rio, When the Tribunal Is an Algorithm: Complexities of Enforcing
Orders Determined by a Software Under the New York Convention, 121 Kluwer 34 (2019).
44
Article 11 UNCITRAL Model Law.
45
Article 19 UNCITRAL Model Law.
62 ARBITRATION: THE INT’L J. OF ARB., MED. & DISPUTE MGMT
appointment of a natural person, the law of the seat shall prevail by virtue of
Article 34(2)(a)(IV) UNCITRAL Model Law.46 That is, an award rendered by
an AI arbitrator duly appointed by parties can be challenged if such appoint-
ment is contrary to the lex arbitri. However, it is important to note that, for a
party to successfully raise this issue as a ground for challenging the arbitral
award, it must be successfully raised during the early stages of the
proceedings.47
46
Article 34(2)(a)(IV) UNCITRAL Model Law.
47
Bayraktaroğlu-Özçelik & BarışÖzçelik, supra n. 31, at 11.
48
Nairobi Centre for International Arbitration, Artificial Intelligence (AI) in International Arbitration:
Machine Learning (2021). See https://ncia.or.ke/wp-content/uploads/2021/08/ARTIFICIAL-
INTELLIGENCE-AI-IN-INTERNATIONAL-ARBITRATION.pdf (accessed 22 Mar. 2022).
49
Ibid.
50
Article 3.1 Scottish Short Form Arbitration Rules 2012, s. 8 Arbitration (Scotland) Act 2010.
51
European Parliament Resolution of 16 Feb. 2017 with recommendation to the commission on civil
law rules on robotics (2015/2103(INL)).
A STEP TOO FAR? 63
52
Andrew I. Okekeifere, Public Policy and Arbitrability Under the UNCITRAL Model Law, 2 Int’l A.L.R.
70–77 (1999).
53
Ibid.
54
Article 34(2)(b)(ii) UNCITRAL Model Law.
55
Article V (2)(b) New York Convention.
56
Regulation (EC) No 593/2008 of the European Parliament and of the Council of 17 Jun. 2008
(‘Rome I’), Art. 21; Regulation (EU) No 1215/2012 of the European Parliament and of the Council
of 12 Dec. 2012 on jurisdiction and the recognition and enforcement of judgments in civil and
commercial matters (recast), Art. 45(1)(a), Art. 46; Swiss Federal Act on Private International Law, Art.
27(1); Turkish Private International Law Act amongst others.
57
Bayraktaroğlu-Özçelik & BarışÖzçelik, supra n. 31, at 12.
58
Ibid.
59
Ibid.
60
Eidenmüller & Varesis, supra n. 3.
61
IBA Guidelines on Conflicts of Interest in International Arbitration, supra n. 19.
62
M. V. Benedetelli, Human Rights as a Litigation Tool in International Arbitration: Reflecting on the ECHR
Experience, 4 Arb. Int’l 59 (2015).
63
J. J. Angwin et al., Machine Bias (2016), https://www.propublica.org/article/machinebias-Risk-assess
ments-in-criminal-sentencing (accessed 22 Mar. 2022). See also A. Caliskan et al., Semantics Derived
Automatically from Language Corpora Contain Human-Like Biases, 356 Sci. 183–186 (2017), see also
Bayraktaroğlu-Özçelik & BarışÖzçelik, supra n. 31, at 13.
64 ARBITRATION: THE INT’L J. OF ARB., MED. & DISPUTE MGMT
when the algorithms have been fed enough data by humans.64 This data can be
discriminatory in nature as it may contain elements likely to affect race and
gender.65
Another potential ground for challenge of an award or denial of recognition and
enforcement of an award on the ground of public policy, may be linked to the
absence of a reasoned decision in an arbitral award.66 By virtue of Article 32(2) of the
UNCITRAL Model Law, an award shall be valid if it contains a reasoned decision
of an arbitral tribunal unless the parties expressly agree that the reasoning should not
be stated, or the award is based on an agreement entered into by the parties.67 This
means that, in jurisdictions where the national legislation provides for the reasoning
of an award as a strict requirement for validity, the absence of such will amount to a
violation of public policy.68 Algorithms lack feelings and empathy, and certainly
cannot make use of discretion,69 all of which are components of a reasoned award.
Justice is much more than a processed macro data and a set of precedent decisions; it
is distinctly not a well-constructed algorithm.70 It is a human virtue which is
characterized by a range of factors such as evaluating and analysing key facts and
legal arguments, application of the law of the state, and the use of discretion to arrive
at what a tribunal feels right and just for all parties involved.71
Nevertheless, awards rendered by AI arbitrators might be welcomed by parties
and not challenged on grounds of public policy if it is contended that there are
certain advantages that might be associated with an AI arbitrator acting as an
adjudicatory authority. Such advantages may include the following: duration of
proceedings may cease to become worrisome to parties as proceedings may be
determined in a matter of months as opposed to years in the human arbitrator
regime.72 Some scholars have widely embraced this concept and stated that the:
dissatisfaction and grievances occasioned by resort in arbitration as a medium of dispute
settlement by parties which is associated with time, cost and the nonchalant behaviour of
members of the arbitral community will be greatly reduced by the introduction of
technology to this system and making such technology affordable to parties.73
64
Ibid.
65
Ibid.
66
M. Scherer, International Arbitration – How Artificial Intelligence Will Change Dispute Resolution, Austrian
Y.B. Int’l Arb. 514 (2019).
67
Article 32(2) UNCITRAL model law.
68
Scherer, supra n. 66.
69
Sim, supra n. 7.
70
Nairobi Centre for International Arbitration, supra n. 48.
71
Ibid.
72
Ibid.
73
Paul Cohen & Sophie Nappert, The March of the Robots (2015), http://globalarbitrationreview.com/
article/1080951/the-march-of-the-robots (accessed 22 Mar. 2022). See also Jack Wright Nelson,
Machine Arbitration and Machine Arbitrators (2016), http://www.youngicca-blog.com/machinearbitra
tion-and-machine-arbitrators/ (accessed 22 Mar. 2022).
A STEP TOO FAR? 65
Algorithms may also be developed which are capable of learning and applying
precedent decisions in a matter of minutes, thereby under some circumstances
rendering a better decision than would human arbitrators.74
It is, however, worthy of note that several jurists have contended that algo-
rithms are generally susceptible to inaccuracy, and that because the underlying
software is kept secret there is no means of reviewing decisions.75 This will deter
the strict adherence to decisions rendered by AI arbitrators.76
74
Nairobi Centre for International Arbitration, supra n. 48.
75
Sim, supra n. 7.
76
Ibid.
77
Ibid.
78
Bayraktaroğlu-Özçelik & BarışÖzçelik, supra n. 31.
79
Ibid.
80
Arnav Joshi, Replacing Arbitrators With Artificial Intelligence in International Arbitration (2020). See https://
www.thearbitrationworkshop.com/post/replacing-arbitrators-with-artificial-intelligence-in-interna
tional-arbitration (accessed 22 Mar. 2022).
81
Anandaday Misshra, Artificial Intelligence(AI) and Its Effects on Arbitration (2020). See https://taxguru.in/
corporate-law/artificial-intelligence-ai-effects-arbitration.html (accessed 23 Mar. 2022).
66 ARBITRATION: THE INT’L J. OF ARB., MED. & DISPUTE MGMT
data. There have been incidents where existing algorithms have been reported
to make judgments in a discriminatory manner due to the information that was
fed to them. A notable algorithm of this type was the Amazon recruitment
database, which was proven to be gender-biased thereby employing more men
than women.82
Furthermore, in cases where an established pattern exists that involves a
particular set of people dominating a branch of arbitration, an AI arbitrator is
likely to rule in favour of that set in any future dispute without looking into the
merits of the case due to the data that was fed to it.83 For example, in international
investment arbitration where investors have in most cases won cases over host
states, an AI arbitrator may in any future dispute award the case to the investor
without looking at the merits of the case.84 This is because an algorithm’s output
largely depends on its input; this is derived from the concept ‘garbage in, garbage
out’.85
Another major legal impact an AI arbitrator could have on arbitration is the
issue of absolute immunity granted to the arbitrator by statute.86 By virtue of
Article 41 of the ICC rules, an arbitrator is granted with immunity to render
awards, only limited only by decisions made in bad faith.87 This means that, if it
is established that a human arbitrator has rendered one or several awards in bad
faith, he or she will be liable and may face disciplinary action which may result
in dismissal from office. However, where the arbitrator is a machine arbitrator
or AI arbitrator, the ultimate question will be: Who is responsible? The
developer of the algorithm? The person who fed data to the algorithm? The
machine itself?88
Nonetheless, there seem to be positive impacts of an AI arbitrator replacing a
human arbitrator. Scholars have opined that the unpredictability associated with
arbitral awards will decrease as AI tools are developed to predict cases. Moreover,
AI arbitrators will greatly help in solving problems of prolonged duration of
proceedings, cost, and legal inconsistencies associated with many if not most
awards.
82
Jeffrey Dastin, Amazon Scraps Secret AI Recruiting Tool that Showed Bias Against Women (2018). See
https://www.reuters.com/article/us-amazon-com-jobs-automation-insight/amazon-scraps-secret-ai-
recruiting-tool-that-showed-bias-against-women-idUSKCN1MK08G (accessed 23 Mar. 2022).
83
Jean R. Sternlight, Creeping Mandatory Arbitration: Is It Just?, 57 Stan. L. Rev. 1631, 1650 (2005).
84
Rhim & Bae Park, supra n. 8, at 10.
85
Oscar Tang, Think Arbi: Will Artificial Intelligence Help or Harm Arbitration? (2021). See http://arbitra
tionblog.kluwerarbitration.com/2021/12/22/think-arbi-will-artificial-intelligence-help-or-harm-arbi
tration/ (accessed 23 Mar. 2022).
86
Mahnoor Waqar, The Use of AI in International Arbitration (2021), https://papers.ssrn.com/sol3/papers.
cfm?abstractid=3931233 (accessed 23 Mar. 2022).
87
Article 41 ICC Rules.
88
Waqar, supra n. 86.
A STEP TOO FAR? 67
89
Sadaff Habib, The Use of Artificial Intelligence in Arbitration in Africa – Inevitable or Unachievable? (2020),
IBA. See https://www.ibanet.org/article/E62B06F6-7772-458A-A6E7-1474DB7136B5 (accessed 23
Mar. 2022).
90
Ibid.
91
Lagos State Arbitration Act 2004.
92
See China–Africa Joint Arbitration Centre at http://www.shiac.org/CAJAC/index_E.aspx (accessed
23 Mar. 2022).
93
Ibid.
94
Article 5 UAA 2017.
95
Article 11 UNCITRAL Model Law.
96
Waqar, supra n. 86.
97
Ibid.
98
Ibid.
68 ARBITRATION: THE INT’L J. OF ARB., MED. & DISPUTE MGMT
99
Dolling-Baker v. Merrett (1990) 2 ALL ER 890.
100
Article 21(6) Arbitration Foundation of South Africa.
101
N. Butcher, M. Wilson-Strydom & Baijnath, Artificial Intelligence Capacity in Sub-Saharan Africa:
Compendium Report (2021), AI4D. See https://africa.ai4d.ai/wp-content/uploads/2021/03/AI4D-
Report%E2%80%94AI-in-SSA.pdf (accessed 23 Mar. 2022).
102
Ibid.
103
Waqar, supra n. 86.
104
Ibid.
105
Ibid.
106
Kathleen Paisley & Edna Sussman, Artificial Intelligence Challenges and Opportunities for International
Arbitration, 11(1) N.Y. Disp. Res. Law. 35–40 (2018).
A STEP TOO FAR? 69
8 ETHICAL CONSIDERATIONS
There are a number of ethical concerns associated with the use of AI in interna-
tional arbitration that go beyond the replacement of human arbitrators with AI.
These concerns include but are not limited to the following:
There have been major concerns as to the fairness of proceedings that will be
conducted by an AI arbitrator.107 This is mainly associated with the quality of
output of an AI tool which has been established to be totally dependent on the
input. That is, an AI tool can only render an award based on the data that has been
fed to it. Some scholars have contended that there is a possibility of data bias, and
this may likely affect gender and race discrimination.108 This suggests that the
fundamental requirements for appointment of arbitrators (i.e., impartiality and
independence)109 may be breached. This is complicated in that parties in interna-
tional arbitration cannot generally appeal the decision of an arbitrator as the
decision of an arbitrator is final and binding except in limited circumstances and
only on questions of law and not fact.110 This is a major ethical issue because, in
the event that an award is unfair to a party based on racial or gender bias grounds,
the party cannot appeal the decision except in these limited circumstances. Some
legislation provides that parties can only challenge the recognition of the award.111
This is still not a satisfactory situation, as a number of unanswered questions arise,
such as: Who can be held responsible, the developer of the algorithm? The person
who inputted the data? The AI arbitrator itself?112
107
Ibid.
108
Angwin et al., supra n. 63.
109
IBA Guidelines on Conflicts of Interest in International Arbitration, supra n. 19.
110
Article 35 UNCITRAL model law, s. 69 English Arbitration Act 1996.
111
Article 35 UNCITRAL Model Law.
112
Waqar, supra n. 86.
113
Article 32(2) UNCITRAL Model Law.
114
Sim, supra n. 7.
70 ARBITRATION: THE INT’L J. OF ARB., MED. & DISPUTE MGMT
and therefore cannot provide the reason for its decision. In the case that a party is
not satisfied with the decision of the AI arbitrator and wants to challenge the
award, this will lead to a major issue as the court will not be able to determine the
reasoning behind any decision made by the AI tool.
8.3 CONFIDENTIALITY
One of the major attractions of arbitration as a mode of alternative dispute
settlement is the privacy and confidentiality associated with the process.115 In the
event of any development and subsequent use of an AI arbitrator, there might be
demands for the publication of arbitral awards thereby defeating parties’ interest.
8.4 SECURITY
With the high rise of cybercrime currently taking place in the world, an ethical
concern may arise as to security measures put in place to protect AI-based tools from
hacking, spam, malicious viruses and other such criminal attacks.116 Inadequate
security measures can manipulate AI Arbitrators into making biased decisions.
It is worthy of note that the European Commission in 2018 set up a group, the
European Commission’s High Level Expert Group on Artificial Intelligence,117
whose primary responsibility is to evaluate prevalent ethical issues stemming from
the use of AI and set regulatory guidelines. These guidelines stipulate policies to
ensure that AI tools are human-centric and in compliance with the Charter of
Fundamental Rights of the European Union.118 They focus on the principle of
justice, requiring judgments to be free from bias or any form of stigmatization.119
9 CONCLUSION
This discourse has demonstrated and critically analysed the consequence of the use
of AI-based technologies in international arbitration and the possibility of replacing
human arbitrators with AI Arbitrators.
115
Dolling-Baker v. Merrett, supra n. 99.
116
James Kwan, James Ng & Brigitte Kiu, The Use of Artificial Intelligence in International Arbitration: Where
Are We Right Now?, 22 Int’l A.L.R. 19–26 (2019).
117
The European Commission’s High Level Expert Group on Artificial Intelligence, Draft Ethics
Guidelines for Trustworthy AI: Working Document for Stakeholders’ Consultation (2018). See https://ec.
europa.eu/digital-single-market/en/news/have-your-say-european-expert-group-seeks-feedback-
draft-ethics-guidelines-trustworthy (accessed 25 Mar. 2022).
118
Paragraph 4 of the Draft Ethics Guidelines for Trustworthy AI: Working Document for Stakeholders’
Consultation.
119
Ibid.
A STEP TOO FAR? 71
120
McGlove v. Lacey (1968) 288 F. Supp.
72 ARBITRATION: THE INT’L J. OF ARB., MED. & DISPUTE MGMT
which has been fed to ‘it’.121 It is, however, uncertain if an algorithm can be
developed to have emotions and function with discretion.
In any event, it can be agreed at present that public policy serves as a major
roadblock to the smooth entering into force of the machine arbitrator’s regime.
Recognition and enforcement of awards rendered under such a regime may still
encounter major difficulties under the New York Convention.
This study concluded by examining the ethical considerations occasioned by
the adoption of an AI regime. A party could contend that the use of AI arbitrators
could lead to severe unfairness and partiality in the case. This may be as a result of
data bias, and subsequently not being able to appeal will deprive that party of the
fundamental right to a fair hearing.
10 RECOMMENDATIONS
10.1 AMENDMENTS OF LEGAL INSTRUMENTS
The amendment of the New York Convention and re-enactment of national and
international instruments expressly enabling the use of AI-based technologies, appoint-
ment of AI arbitrators, and recognizing awards rendered therein will be one of the first
steps in accepting this new system. It should be noted that discussions are currently
ongoing as to the amendment of the New York Convention.122 This amendment will
ensure that most public policy grounds for challenging an award or enforcing an award
will be silenced so the appointment of an AI arbitrator will not contravene the dictates of
any legal instrument. Moreover, given that the major attractions of arbitration are the
autonomy and flexibility of parties to be able to control the system, mandatory aspects of
legislation which may hinder this flexibility should be abolished.
121
Ryan Calo, Robots as Legal Metaphors, 30 Harv. J.L. & Tech. 209, 218–219 (2016).
122
Tirado, Acevedo & Cosio, Draft Convention on the International Enforcement of Arbitration Agreements and
Awards 310 (2019).
123
ICC, Note to Parties and Arbitral Tribunals on the Conduct of the Arbitration Under the ICC Rules of
Arbitration (2019), https://iccwbo.org/content/uploads/sites/3/2017/03/icc-note-to-parties-and-arbi
tral-tribunals-on-the-conduct-of-arbitration.pdf (accessed 25 Mar. 2022).
A STEP TOO FAR? 73
The less developed countries or countries that cannot easily afford to make use of
these technological tools should be assisted in one way or another. There should be
uniform access to these tools by every country that has adopted and is practicing
arbitration, as failure to do so will lead to ground for challenging the transparency
and nondiscrimination of this process.
There should be some kind of manual or regulation guiding the kind of data that
will be ‘fed’ to AI arbitration software ensuring that it is devoid of discrimination
or bias, with features that ensure it can always be updated with the latest precedents
and laws.
11 BIBLIOGRAPHY
11.1 ARTICLES
11.2 CASES
11.3 LAWS
11.4 WEBSITES
E. A. Adriano, The Natural Person, Legal Entity or Juridical Person and Juridical
Personality (2015), https://elibrary.law.psu.edu/cgi/viewcontent.cgi?article=
1117&context=jlia (accessed 21 Mar. 2022).
N. A.-S. Ahmed Mohammad Al-Hawamdeh, The Effects of Arbitrator’s Lack of
Impartiality and Independence on the Arbitration Proceedings and the Task of Arbitrators
Under the UNCITRAL Model Law (2018), https://www.researchgate.net/publica
tion/327320717_The_Effects_of_Arbitrator’s_Lack_of_Impartiality_and_
Independence_on_the_Arbitration_Proceedings_and_the_Task_of_Arbitrators_
under_the_UNCITRAL_Model_Law (accessed 28 Mar. 2022).
R. Calo, Artificial Intelligence Policy: A Primer and Roadmap (2017), https://ssrn.
com/abstract=3015350 (accessed 14 Feb. 2022).
F. Daso, A Harvard Law School Legal Tech Start Uo Uses AIto Settle Arbitration
(n.d.), https://www.forbes.com/sites/frederickdaso/2020/02/04/arbilex-a-har
vard-lawschool-legal-tech-startup-uses-ai-to-settlearbitrations/#4fc587da52c5
(accessed 15 Mar. 2022).
J. Dastin, Amazon Scraps Secret AIRecruiting Tool that Showed Bias Against
Women (2018), https://www.reuters.com/article/us-amazon-com-jobs-automa
tion-insight/amazon-scraps-secret-ai-recruiting-tool-that-showed-bias-against-
women-idUSKCN1MK08 (accessed Mar. 2022).
C. Dolinar-Hikawa, Beyond the Pale: A Proposal to Promote Ethnic Diversity
Among International Arbitrators (2015), http://sidley.com/-/media/publications/
tv124article17.pdf (accessed 28 Feb. 2022).
H. Eidenmüller & F. Varesis, What Is an Arbitration? Artificial Intelligence and the
Vanishing Human Arbitrator (2020), https://ssrn.com/abstract=3629145 (accessed
14 Feb. 2022).
S. Habib, The Use of Artificial Intelligence in Arbitration in Africa – Inevitable or
Unachievable? (2020), https://www.ibanet.org/article/E62B06F6-7772-458A-
A6E7-1474DB7136B5 (accessed 23 Mar. 2022).
A. Joshi, Replacing Arbitrators With Artificial Intelligence in International Arbitration
(2020), https://www.thearbitrationworkshop.com/post/replacing-arbitrators-
with-artificial-intelligence-in-international-arbitration (accessed 22 Mar. 2022).
Limited, Ebram International Online Dispute Resolution, https://www.ebram.
org/services.html (accessed 14 Feb. 2022).
Manhoor Waqar, The Use of AI in International Arbitration (n.d.), https://
papers.ssrn.com/sol3/papers.cfm?abstractid=3931233 (accessed 23 Mar. 2022).
J. McCarthy, What Is Artificial Intelligence (2007), http://jmc.stanford.edu/
articles/whatisai/whatisai.pdf (accessed 14 Feb. 2022).
A STEP TOO FAR? 77
11.5 REGULATIONS
Regulation (EC) No 593/2008 of the European Parliament and of the Council of
17 Jun. 2008 (‘Rome I’).
Regulation (EU) No 1215/2012 of the European Parliament and of the
Council of 12 Dec. 2012 on jurisdiction and the recognition and enforcement of
judgments in civil and commercial matters (recast).
11.6 REPORTS