Artificial Intelligence (AI) Arbitrators - Law Assignment Help

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ARTIFICIAL INTELLIGENCE (AI) ARBITRATORS- CHALLENGES AND IMPACT ON THE FUTURE OF INTERNATIONAL COMMERCIAL ARBITRATION
ABSTRACT
International commercial arbitration is most preferred dispute resolution mechanism by the business entities the world over. One of the important factor for this is that the award passed by the arbitrator is final and binding. Moreover, these awards are accorded recognition and enforcement across nations which are party to the New York Convention, 1958. The arbitrator is the centre of the arbitration process. He presides over the arbitration, conducts the proceedings, provides interim relief and passes the final and binding award. The importance of arbitrators cannot be more emphasised. But, there are number of raising concerns with regard to the functioning of the arbitrators, including, their competence, independence and impartiality etc. Such raising concerns are creating dissatisfaction among the patrons of international arbitration. Rapid evolving technology is providing solutions to number of traditional issues its various challenges. This research thus seeks to provide a concrete perspective on replacing existing arbitrators with AI.

INTRODUCTION
Arbitration is private litigation practice wherein parties to a contract, agree to resolve disputes arising between them through Alternate Dispute Resolution (ADR) mechanism, especially arbitration. Thus, parties to the contract will have a separate ‘arbitration clause’ in the contract, which is generally referred to as the arbitration agreement. Generally, various aspects relating an arbitrator who would be ‘apt’ for them. Parties also carry out background search on how the arbitrator has rendered previous decisions, and his/her other publications etc. on the issue. Hence, it is important for the parties to select someone as an arbitrator, who is well-knowledgeable in the field and who is supposed to be inclined in their favour. Such, inclination differs in degree and many a times if the award is rendered in favour of one party is subject to challenge by the other alleging bias, thus questioning the finality of the award rendered. Apart from this availability of arbitrator in niche fields like sports, medicine is less and parties end up appointing the same arbitrator, which has number of disadvantages including heavy burden of cases on the arbitrator and thus delay in finishing the proceedings, and challenge of the award by the party because of violation of guidelines.

Technology has been fast developing and the advent of Artificial Intelligence (AI) and its integration to various fields is the next huge step. AI has number of advantages in the field of law, litigation and has been used to help the counsels in case management etc. At present the multifarious benefits of the AI can be implemented in the arbitration process by enabling AI to act as the arbitrator. Arbitration unlike litigation is not procedural biased, and thus, parties can autonomously file case documents, submit statements etc. Apart from this, the parties themselves can choose to be arbitrated by AI in their arbitration agreement itself. The AI can quickly and efficiently decide a case at hand. Parties need the arbitrator to be unbiased, independent from influence etc. and AI is all that and much more, and the parties can rest assured that their cases will only be decided on merits and merits alone. The entire cost of proceedings is also reduced and availability of arbitrator will not be a concern.
Arbitration was envisaged as a distinct mechanism from traditional litigation to quickly and efficiently resolve disputes between two contracting parties. But, such advantages have been lost due a number of reasons. It is time therefore, to embrace the technology- AI in order to reclaim the advantages of the arbitration process. Being contractual in nature, it is up to the parties to appoint the AI as the arbitrator in order to revolve the disputes between them, and the award rendered by the AI arbitrator can be honoured by the parties. The challenge will be in its recognition and enforcement in the national courts. This challenge can be addressed by the Nation States by bringing in required amendments and it varies nation to nation. If the country wants project itself as an arbitration hub, then it would be prudent to recognise and bring in necessary mechanisms to facilitate the arbitration process.

Historical Development of International Commercial Arbitration
Commercial Arbitration is said to be followed since ancient times by the traders and their guilds. The international aspect came into picture when the traders started to export-importine and was developed using the IBM Watson API. Another, ‘DoNotPay’ was introduced to be the ‘World’s first robot lawyer’, it was a ChatBot that offered advice for parking ticket violation.(Porter, 2018)
The use of AI in law traditionally referred to as legal technology generally used the software to help the firms in practice management, document storage, billing, accounting and e- discovery. But at present the scope of using AI in field of law has expanded as seen from above, where AI based ChatBots have been developed to assist not the lawyers but the people. AI has also been used by a judge in USA to predict the outcome of a case.(Kugler, 2018) AI has also been used to predict outcome of cases in European Court of Human Rights and the AI has been able to accurately predict the outcome in 80 percent of the cases (Johnson, 2016). Thus AI has seen increasing and diverse application in field of law and is set to completely turn around the way we see the justice delivery system.

Artificial Intelligence in Arbitration
As seen above there are several software which have been developed for case management and these have been used by the counsels of the parties to arbitration and also by the arbitral institutions for case management. The particular aspect of interest in this thesis is with regard to AI acting as arbitrators in arbitration process.

Artificial Intelligence Arbitrators
We have seen various drawbacks of involvement of arbitrators in the arbitration process. Important among these are the aspect of neutrality, being independent and impartial, having expertise, availability and cost. AI systems are programmed to be neutral and being a machine it will not have bias. The parties will be more inclined to select such AI arbitrator who is neutral to both the parties and will decide the case on merits. Moreover, the AI system can be developed to have expertise in any field, be it sport, construction or labour. Thus, the parties need not break their head to identify, scrutinise and select an arbitrator who has expertise in the relevant field of dispute. The AI arbitrator will also be available to the parties whenever they want and the cost is also considerably reduced.
Most significant advantage is that the parties can include the AI arbitrator in the arbitration clause itself so that in case of any disputes the matter is immediately taken up by the AI arbitrator. Thus, developing AI to act as arbitrators has considerable advantage over conventional human arbitrator. We will be seeing in this thesis what advantages these AI arbitrators offer and weigh it along with its limitations in order to assess the capability of AI arbitrators taking over the field of arbitration.

SCOPE OF STUDY
International commercial arbitration focuses of providing an effective alternate dispute resolution mechanism for resolving disputes arising out from international trade related contracts. The use of International arbitration has grown tremendously as it provides various advantages to the parties. Current era is said to be the era of technology, the growth of technology is phenomenal especially that of Artificial Intelligence. This AI has be applied in law (legal field) in various form and research is going on at present to make AI take up more roles.
This thesis focuses on the interface between AI and International Arbitration. The advantages offered by the AI can be incorporated and utilized to make the arbitration process much more efficient. This thesis studies the various advantages offered by AI when it acts as an arbitrator. This thesis also focuses on the feasibility of such action and various drawback and limitations associated with it. Can a machine-AI perform the role of a human arbitrator to decide the outcome of a case? And how parties will react to such prospect? Also, how will the courts take up awards passed by AI during the enforcement proceedings? Thus, this thesis aims to cover these aspects and provide a comprehensive aspect on whether AI can replace a human arbitrator.

AIM AND OBJECTIVES OF THE STUDY
To understand the functioning of Artificial Intelligence
To study the working of International Commercial Arbitration
To critically discuss the significance of Arbitrator in the Arbitral Proceeding.
To analyse the functioning of Artificial Intelligence
To explore the functioning of AI as Arbitrators

HYPOTHESIS
Artificial Intelligence is/shall be an effective replacement of human Arbitrators.

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