The American Arbitration Association’s International Centre for Dispute Resolution (AAA-ICDR) will introduce an AI arbitrator for documents-only construction disputes starting November 2025. This option, requiring consent from both parties, targets cases under $25,000 and builds on previous AI initiatives, including tools for drafting legal submissions and arbitrator searches. Trained on over 1,500 construction arbitration awards, the AI arbitrator aims to enhance efficiency, providing reasoned decisions and draft awards while still involving human oversight to ensure transparency and due process. Anticipated benefits include a 30-50% reduction in costs and a 25-30% decrease in resolution time for construction disputes. However, challenges persist, such as data privacy, potential biases, and the legal implications of using AI, which could lead to enforcement issues. The AAA-ICDR acknowledges these risks and will provide detailed mitigation strategies as they roll out this innovative arbitration solution.
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