Can AI Deliver Justice? Inside the Future of Arbitration with Bridget McCormack

The Emergence of Artificial Intelligence in Legal Proceedings

Artificial intelligence is swiftly forging its path into the legal realm, no longer functioning solely as a tool for research or document review, but emerging as a potential decision-maker in disputes. Bridget McCormack, former Chief Justice of the Michigan Supreme Court and current President and CEO of the American Arbitration Association (AAA), is a major force in this transformative shift.

Enter the domain of arbitration, a method of resolving disputes outside the conventional court system. A neutral third party, known as the arbitrator, presides over the case, listens to both parties, and delivers a binding decision. Swift and often less costly than litigation, arbitration has become ubiquitous in commercial contracts and consumer agreements. The odds are high that you have unknowingly consented to arbitration—for instance, in the terms and conditions for your mobile device or home appliances.

Blending AAA’s Hundred-Year Mission with Modern Technology

Serving for over a century, The AAA has annually managed more than half a million cases. The majority pertain to business-to-business disputes, but an increasing number involve consumers and self-represented parties. McCormack emphasizes how arbitration removes many barriers, making it more accessible than court procedures—particularly for those unable to afford legal representation.

To bring arbitration in tune with contemporary times, the AAA has developed an AI-powered arbitration platform called the AI Arbitrator. Aiming to streamline the process, this platform has been meticulously designed for handling specific disputes, such as construction cases that can be resolved through written documentation alone. The AI Arbitrator goes through claims, evaluates evidence, and formulates decisions, all under the guidance of a human arbitrator.

How the AI Arbitrator Functions

The AI Arbitrator uses a string of specialized agents to navigate disputes. The journey starts with the collection of documents and recognition of the legal matters in question, then proceeding to confirm its findings with both parties to ensure accurate understanding. With any necessary corrections or clarifications made, the AI processes the dispute and drafts a decision, to be reviewed and finalized by a human arbitrator.

Choosing construction-related cases as the starting point was a logical decision given the industry’s familiarity with arbitration and the frequent need for expeditious resolutions. These cases often feature clear documentation, such as delivery schedules and contract terms—making them perfectly suited for AI assessment without necessitating live testimony.

Of course, the use of AI within legal contexts does raise concerns about fairness. Can a machine genuinely comprehend and empathize with human disputes? McCormack contends that AI can actually bolster fairness by ensuring all parties feel their case has been adequately understood — an aspect often absent in traditional courtrooms.

The Role of AI in Creating Trust and Ensuring Accountability

There is a great deal of apprehension that AI systems fall short of the accountability human judges hold. While acknowledging this, McCormack also points out the fallibility of human judges. She asserts that the AI system’s governance, auditing, and transparency make tracking and correcting errors easier. Additionally, a human arbitrator’s presence to supervise the process and guarantee quality remains paramount.

While the initial phase is focused on construction disputes, McCormack foresees potential for AI in arbitration in varied sectors like supplier disagreements and healthcare payer-provider conflicts. However, criminal cases and disputes involving the government are marked boundaries for her, as she firmly believes these should remain within public courts for the sake of transparency and accountability.

As trust in the legal system stands at an unfortunate low, McCormack is optimistic that AI, if responsibly implemented, can aid in restoring that trust. By making processes highly transparent and ensuring that all parties feel heard, AI could potentially enhance the perception of fairness and accessibility in conflict resolution.

Reflecting on AI in Arbitration: Harnessing Potential and Acknowledging Challenges

Looking to the future, even though the AI Arbitrator has only handled a single case so far, AAA holds high hopes for its evolution. Plans include expanding the platform to accommodate diverse types of disputes and offering early case evaluations. McCormack envisions AI playing a significant part in resolving a myriad of legal conflicts—efficiently, fairly, and with full transparency.

In her closing thoughts, McCormack is pragmatic about both the promise and the pitfalls of AI in arbitration. While it may not replace human judgment entirely, she believes AI can enhance and supplement existing systems. In her perspective, providing more ways to resolve disputes, especially for those marginalized within the legal system, is a stride towards a more equitable society.

For an in-depth interview and further insights, visit the original article on The Verge.