Selecting arbitrators by AI: theoretical analysis and institutional responses

Abstract

The rapid development and widespread application of artificial intelligence (AI) are profoundly shaping the evolution of dispute resolution mechanisms, including arbitration, while offering novel solutions to longstanding challenges in the current arbitration system. Rooted in the principle of party autonomy, the arbitration system entitles disputing parties to select arbitrators by mutual agreement. In practice, however, this framework has given rise to issues such as malicious delay tactics by parties, difficulties in appointing qualified arbitrators, all of which undermine the fairness and efficiency that are foundational to arbitration. While AI-assisted arbitrator selection can address these aforementioned problems, it also raises concerns from a rule of law standpoint. Key issues include algorithmic manipulation that impairs party autonomy, data collection practices that infringe on arbitrators’ data privacy, and tensions between computational rationality and the emotional or normative dimensions inherent arbitration. To address these concerns, inclusive legislation should create room for the integration of AI into arbitration; concurrently, industry regulation and arbitration soft law should be leveraged to demystify “black box algorithms” and standardize AI-driven arbitrator selection processes. These measures will help safeguard the credibility of arbitration and foster the healthy development of the arbitration system in the age of AI. The convergence of AI and arbitration further prompts critical reflection on the transformation of the legal discourse system amid technological advancement. In this context, the law should adopt an inclusive yet prudent stance toward technological progress, both preserving space for ongoing innovation while establishing boundaries to prevent technology from fundamentally upending the existing legal system and social order. This balanced approach – pursuing stability through reform and advancing development through change – should serve as the guiding principle for the evolution of the arbitration system in the AI era.