We share the participation of our partner Ariela Agosin, for Expert Focus of Chambers and Partners, where she addressed the role of AI in arbitration proceedings in Chile.
Ariela Agosin, a partner at Albagli Zaliasnik and leader of the firm’s litigation practice, discusses the evolving role of AI in arbitration, highlighting both potential benefits and risks, particularly regarding efficiency, impartiality, and confidentiality.
AI as a Tool for Arbitrators
AI can significantly aid arbitrators by streamlining evidence management and case analysis. Arbitration often involves large volumes of data, and AI tools can help systematise, classify, and analyse this information efficiently. AI can also assist with transcriptions, audio-visual processing, and administrative tasks such as issuing procedural notifications. These capabilities enhance the speed and accuracy of arbitration processes.
“AI can assist arbitrators in managing and analysing the evidence… Most of the difficulties that arbitrators have at the moment of ruling is managing and systematising the evidence and all the information”.
However, Agosin emphasises that AI should serve as a supportive tool rather than replace human judgment. Some procedural decisions, such as verifying the validity of a power of attorney, can be automated, but final rulings and complex legal judgments should always involve human oversight. In jurisdictions such as China, AI is already used to generate case resolutions, but these decisions must be reviewed and approved by human judges.
Ensuring Impartiality and Reducing Conflicts of Interest
AI has the potential to improve arbitrator selection by conducting more thorough conflict-of-interest checks. Currently, appointing arbitration panels can be a lengthy process due to unforeseen conflicts that arise after selection. AI can accelerate this by scanning databases to detect potential conflicts more comprehensively and efficiently. While it cannot eliminate all risks, it can help avoid many common delays and disputes over arbitrator neutrality.
Challenges to Confidentiality
One of the key concerns Agosin raises is the challenge of maintaining confidentiality in arbitration when using AI. Arbitration is often chosen over litigation precisely because it offers privacy. However, AI tools frequently operate on cloud-based platforms, raising concerns about data security and unauthorised third-party access.
To mitigate these risks, Agosin suggests three key measures:
- Disclosing AI tools – parties and tribunals should agree on which AI tools will be used and how they process data.
- Anonymising sensitive data – names of individuals and companies should be omitted when using AI to reduce exposure.
- Using private, encrypted AI systems – public AI tools, such as ChatGPT, should only be used with strong security measures in place.
AI’s Role in Arbitration Negotiations
Agosin also discusses AI’s potential role in conciliation and dispute resolution. While human arbitrators play a crucial role in guiding settlement discussions, AI can provide valuable insights by analysing market trends, case precedents, and potential settlement options. AI-generated suggestions could help arbitrators propose creative solutions that might not be immediately obvious. However, she stresses that the final negotiation process should remain human-led.
“AI must always be in combination with human judgment… Some procedural decisions can be made by AI, but at the end of the day, a human judge should always review and approve“.
Looking at Chile’s arbitration landscape, Agosin notes that AI adoption is still in its early stages. While some law firms and institutions are experimenting with AI, there is little regulatory guidance on its use in arbitration. She emphasises the need for clear procedural rules governing AI usage in arbitration cases, ensuring that AI is integrated responsibly while safeguarding confidentiality and procedural fairness.
AI: Friend or Enemy of Arbitration?
Agosin views AI as an invaluable tool that can enhance arbitration’s efficiency, impartiality, and case management. However, she underscores the importance of maintaining human oversight, particularly in decision-making and confidentiality. As AI continues to evolve, she hopes the legal sector will embrace it as a friend rather than a threat.
Publication available in Chambers and Partners. [See here]
