Role of Artificial Intelligence in ADR
Role of Artificial Intelligence in Alternative Dispute Resolution
Introduction
As the name suggest, Alternative Dispute Resolution (ADR) offers a conventional method to
resolve a dispute between two parties avoiding the lengthy process, outside the court. The
three primary modes of ADR are arbitration, mediation and negotiation. Currently ADR has
gain prominence within judiciary, making dispute resolution more feasible and practical.
While witnessing the global expansion of the legal field, one cannot ignore how technology
has also begun to play a significant role in shaping it. This article addresses the role of
artificial intelligence (AI) in ADR.
Evolution ADR and AI
Since ancient times, Alternative Dispute Resolution (ADR) has played a crucial role in
resolving disputes. Systems like the Panchayat and Madhyastha in India serve as early
examples of ADR, offering inspiration for its current applications. Beyond India, countries
like Greece have also utilized ADR practices to settle conflicts.
In 1899, the Indian Arbitration Act was introduced, inspired by English law, marking the
country's first formal step into the field of ADR. Progress continued with the establishment of
Lok Adalats, which institutionalized ADR and granted it legal recognition, further embedding
it within the judicial framework.
Post-independence, ADR underwent significant transformation with the introduction of the
Arbitration and Conciliation Act, enhancing its efficiency and modernizing its approach.
Over time, ADR has evolved substantially, becoming an indispensable tool for simplifying
dispute resolution and making life more convenient.
Similarly, as justice systems have evolved, advancements in technology have significantly
improved human life, with Artificial Intelligence (AI) emerging as a leading innovation. AI
has rapidly advanced, driven by the continuous evolution of its underlying algorithms.
Role of AI in ADR
In the recent decade, the technology has evolved a lot in every industry and legal field is no
exception. In 2024, Briefpoint, Clio, PatentPal, Spellbook AI, and Lex Machina has become
some of the most preferential AI legal tools used in the industry by professionals. These legal
tools have played a vital role by assisting lawyers not just to attract potential client but has
also minimised human error, concentrating on strategy and clients’ engagements. The
assistance of AI has improvised advanced legal research, drafting, documents management
and contract analysis.
Traditionally, ADR depended on human skill to reach an award, but currently, AI has played
a significant role in the realm of prediction. AI has improved ADR outcomes by eliminating
administrative and procedural impediments. Here are the various ways, how AI has
enhanced ADR:
Predictive analytics: Based on the case history, AI has proved its analytical power to give
accurate and valuable recommendation in the ongoing dispute.
Automated Negotiation System: Without involvement of human AI has become more
proficient to leverage algorithm to stimulate negotiation dynamic.
Benefits of AI in ADR
The vast algorithm of AI has made long research easier and document management
manageable. Included benefits are reduction in biasness and improvement in fairness.
Speedy dispute resolving and increased efficiency are other benefits of knowing how
to make use of legal tools.
Challenges and ethical consideration
While considering the benefits of AI, there are some challenges to be tackled. One of
the most raised concerns is about privacy and data protection, most importantly the
lack of human empathy and understanding in sensitive matters. Automated system has
improved access to justice but the data-based analytics can risk the new evolved laws.
As AI advanced in ADR, the future can be seen as more tech friendly, which would be
adding legal framework to regulate the usage of AI in ADR.
Conclusion
The integration of Artificial Intelligence in Alternative Dispute Resolution marks a
transformative era in the legal field. By enhancing efficiency, reducing bias, and
improving accessibility, AI has not only streamlined traditional ADR processes but
also introduced innovative solutions that were previously unimaginable. However, as
we embrace these advancements, it is crucial to address the ethical and legal
challenges they bring, such as ensuring data privacy, maintaining human empathy in
sensitive disputes, and regulating AI's influence on legal frameworks.
The future of ADR lies in striking a balance between technology and human insight,
leveraging AI's potential to improve justice while preserving the core principles of
fairness and equity. As AI continues to evolve, so must the regulatory measures
surrounding its use, ensuring that technology serves as a tool to empower justice
rather than replace its human touch. By doing so, ADR can achieve its ultimate goal
of providing timely, fair, and effective resolution for all.
