This audio is automatically generated. Please let us know if you have any comments.
Dive brief:
- The American Arbitration Association – International Center for Dispute Resolution has launched a new artificial intelligence tool aimed at the construction sector, the organization announced on November 3.
- According to the announcement, the tool will be limited to two-part construction cases, for documents only. The AAA also noted that human oversight is a key part of the process, from the two parties involved who will review and validate the tool’s responses to their submissions to a human referee who will check the final product and issue an award.
- “The construction industry demands fast, fair and clear results, making it an excellent launch pad for this solution,” said Frank Rossi, director of operations and revenue at AAA-ICDR, in the statement. “We’re reshaping expectations of what’s possible in dispute avoidance and resolution.”
Diving knowledge:
Once established and tested in construction, the AAA-ICDR will expand the tool to additional industries, case types and higher value claims. The group also plans to add additional features such as multi-party proceedings, cross-border elements and cultural nuances.
Michael Vardaro, managing partner of the Zetlin & De Chiara law firm and AAA-ICDR arbitrator, told Construction Dive that the tool represents an important milestone for arbitration.
“They’ve received guidelines, but this is the first time one of the organizations has come out and said, ‘We’re going to adopt this technology, and this is how we’re going to do it,'” Vardaro said.
The tool could be especially useful in situations where two parties need a decision quickly to avoid hampering an ongoing project, a net benefit for both groups, Vardaro said. This decision can also be reviewed later.
AAA-ICDR expects a 20% to 25% time savings in the entire process, Rossi told Construction Dive via email.
In the construction industry, builders and contech companies have been engage in an AI arms racewhere builders must scramble to adopt new technology faster than their competitors or risk being left behind. But AI in the legal realm has had its share of high-profile pitfalls already rising tide of so-called ‘AI slop’ in court filings, The New York Times reported.
Vardaro advised that it would also be a good idea to keep an eye on the arbitrage tool. Part of that mandatory human oversight is to make sure the AI doesn’t miss something so glaring that it affects the referee’s decision.
“Generally speaking, we’re in the infancy of this. And so, you know, who knows where we’ll be even a year from now,” Vardaro said.
