Algorithm-driven Dispute Resolution: Comparative Global Practice and Systemic Risks

Abstract

The rapid integration of Artificial Intelligence into systems of justice delivery has significantly altered the landscape of Alternate Dispute Resolution. Mediation, arbitration, negotiation, and Online Dispute Resolution mechanisms increasingly employ AI-driven tools for dispute triage, case management, outcome prediction, settlement facilitation, and legal analytics. While Artificial Intelligence promises efficiency, scalability, and improved access to justice, its deployment within Alternate Dispute Resolution frameworks has also generated serious concerns regarding fairness, transparency, accountability, and the preservation of core Alternate Dispute Resolution values. This article undertakes a comprehensive global analysis of the use of Artificial Intelligence in Alternate Dispute Resolution processes, identifying jurisdictions and Alternate Dispute Resolution methods where Artificial Intelligence is currently operational. It further examines real-time, documented cases where Artificial Intelligence has negatively impacted dispute resolution by producing incorrect predictions, reinforcing bias, undermining due process, or distorting settlement dynamics. Drawing upon judicial decisions, institutional reports, empirical studies, and scholarly literature, the article critically evaluates the risks associated with AI-driven Alternate Dispute Resolution and concludes by outlining what can go wrong when Artificial Intelligence is deployed without adequate safeguards. The article argues for a human-centric, ethically governed, and transparent integration of Artificial Intelligence in Alternate Dispute Resolution.