The Role of Artificial Intelligence in Online Dispute Resolution A Brief and Critical Overview
The Role of Artificial Intelligence in Online Dispute Resolution A Brief and Critical Overview
The Role of Artificial Intelligence in Online Dispute Resolution A Brief and Critical Overview
Hibah Alessa
To cite this article: Hibah Alessa (2022) The role of Artificial Intelligence in Online Dispute
Resolution: A brief and critical overview, Information & Communications Technology Law, 31:3,
319-342, DOI: 10.1080/13600834.2022.2088060
ABSTRACT KEYWORDS
The growth of online dispute resolution can be seen both in real Artificial Intelligence; ODR;
terms, via the development of systems to deal with Technology
lowcomplexity disputes, and theoretically, with many
commentators arguing that such systems represent the future of
dispute resolution and the law as a whole. At the same time,
substantial developments have been made in the use of artificial
intelligence to aid online dispute resolution. Artificial intelligence
agents can be identified as existing in a number of different areas
of dispute resolution as both an aid and a replacement for
traditional resolution techniques. It can be asserted that unless
carefully developed, a number of issues will emerge around the
way that users interact with these systems. AI-based ODR systems
can fail to take into account information which usually affects
dispute resolution, like emotional responses or abstract qualities
of negotiating parties. Additionally, such systems are not yet
equipped to handle certain overarching principles of justice
which affect the resolution process and can therefore have a
subversively normative effect. Furthermore, it is easy to conceive
of a future in which access to justice is hampered rather than
helped by the development of AI processes. Therefore, this paper
aims to investigate the role that AI currently plays in shaping
ODR, and how that role might develop in the future. First this
paper briefly analysed the nature of the development of AI in
ODR and the technology is utilised. This will lend itself to a
discussion regarding what direction the industry is going in.
Second, the issues surrounding the interface between humans
and machines was investigated and the potential effects of these
issues upon ODR was evaluated. Finally, the effect of AIs in ODR,
with regards to an individual’s access to justice, was analysed. It
concludes that a significant level of oversight and regulation will
be necessary to obviate issues with AI in ODR. Also, this paper
provides a series of recommendations regarding how best to
proceed with AI in ODR.
1. Introduction
Law is, at its heart, a matter of dispute resolution.1 It is therefore of little surprise that a
significant amount of discussion revolves not only around the nature of the law itself,2
but also around the manner in which disputes are resolved.3 Nonetheless, there is con-
sensus on the fact that one major weakness of resolving disputes using the judicial
system is that it is time-consuming. This leads to extensive costs associated with litiga-
tion. Consequently, many parties are opting for Alternative Dispute Resolution (ADR)4
mechanisms. These are not only cheaper but they also provide parties with the
means of finding creative solutions which benefit both sides. Within the realm of
ADR, Online Dispute Resolution (ODR)5 is emerging as a leading dispute resolution
tool. ODR represents the combination of modern technology with current ADR tech-
niques.6 As a result, ODR has become prominent over the course of the last few
decades.7 Arguably, the lines between ODR and traditional legal systems are likely to
blur in the future. For example, Lord Justice Briggs recently called for the creation of
an online civil court system due to the increased sophistication of online services and
large proportion of court users who are able to communicate online.8 Given the chan-
ging landscape of disputes resolution due to globalisation, I believe ODR ought to be
examined in detail.
Concurrently to the rise of ODR, the use of artificial intelligence (AI) systems in dispute
resolution has grown significantly. AI can be utilised in a plethora of ways.9 This growth is
itself contextualised by wider conversations about the growing role of AI at a societal
level.10 For example, AI can act as a mediator or provide a quantitative break down in
assets. Therefore, it is important to investigate the role that AI currently plays in
shaping ODR, and how that role might develop in the future to enhance the efficiency
of ODR. This paper examines the development of AI in ODR and the technology that is
utilised. This lends itself to the discussion regarding what direction the industry should
1
Ronald Dworkin, Law’s Empire (HUP, 1986) 13.
2
Debates on the nature and purpose of the law in Anglo-American legal philosophy have largely centred around the Hart-
Dworkin debate – whether the law is a model of rules and what are the limits of judicial discretion. An incredible
amount of literature focuses on justifying Dworkin’s objections or defending Hart’s reply. For a brief overview, see
Scott J Shapiro, ‘On Hart’s Way Out’ in J Coleman (ed), Hart’s Postscript: Essays on the Postscript to the Concept of
Law (Oxford University Press 2001); Kenneth Einar Himma, ‘HLA Hart and the Practical Difference Thesis’ (2000) 6
Legal Theory 1; WJ Waluchow, ‘Authority and the Practical Difference Thesis’ (2000) 6 Legal Theory 45; Matthew
Kramer, ‘How Moral Principles Can Enter the Law’ (2000) 6 Legal Theory 83.
3
The debate has been centred around the merits of the adversarial and communitarian bargaining theories. See Robert J
Condlin, ‘Cases on Both Sides: Patterns of Argument in Legal Dispute Negotiation’ (1985) 44 Maryland Law Review 65;
Robert J Condlin, ‘Bargaining in the Dark: The Normative Incoherence of Lawyer Dispute Bargaining Role’ (1992) 51
Maryland Law Review 1; Rebecca Hollander-Blumoff, ‘Just Negotiation’ (2010) 88 Washington University Law Review
381; Carrie Menkel-Meadow, ‘From Legal Disputes to Conflict Resolution and Human Problem-Solving: Legal Dispute
Resolution in a Multidisciplinary Context’ (2004) 54 Journal of Legal Education 7.
4
Nadja Marie Alexander, Global Trends in Mediation (Kluwer, 2006) 6.
5
Electronic ADR (eADR), online ADR (oADR) and Internet dispute resolution (iDR) are synonymous.
6
Karolina Mania, ‘Online dispute resolution: The future of justice’ (2015) 1 International Comparative Jurisprudence 76, 77
<http://dx.doi.org/10.1016/j.icj.2015.10.006> accessed 26 September 2021.
7
Ibid, 78.
8
Lord Justice Briggs, Civil Courts Structure Review: Interim Report (Judiciary of England and Wales, 2015) 6.7 <https://www.
judiciary.uk/wp-content/uploads/2016/01/ccsr-interim-report-dec-15-final1.pdf> accessed 25 September 2021.
9
Carneiro et al. ‘Online dispute resolution: An artificial intelligence perspective’ (2014) 41 Artificial Intelligence Review
211, 212.
10
Olivia Solon, ‘Man 1, machine 1: landmark debate between AI and humans ends in draw’ (The Guardian, 19 June 2018)
<https://www.theguardian.com/technology/2018/jun/18/artificial-intelligence-ibm-debate-project-debater> accessed
26 September 2021.
INFORMATION & COMMUNICATIONS TECHNOLOGY LAW 321
take. This paper also critically examines the issues surrounding the interface between
humans and machines and assesses the potential effects of these issues upon ODR. It
then attempts to determine the extent to which AI in ODR enhances individuals’ access
to justice. Finally, a series of recommendations are made regarding how best to
proceed with AI in ODR. It is concluded that a significant level of oversight and regulation
will be necessary to obviate issues with AI in ODR.
1.1. Definitions
Due to the novel nature of AI and ODR, the definition of key terms is not straightforward.11
Therefore, it is vital to shed light on definitions of both of ODR and AI for the purposes of
circumscribing the analysis in this paper.
as creating a virtual environment for the settlement of disputes.20 Rather, such a virtual
environment may include21 communication exclusively via a chatroom, with documents
uploaded for all parties to see.22 Alternatively, desires might be translated into numerical
values by a computer.23 This can be greatly distanced from more traditional methods of
ADR involving face-to-face meetings in which tone, body language and environment
might all have a tangible effect upon proceedings.24
ODR has grown in popularity over recent years since 1990.25 By 1999, ODR was readily
embraced by many companies. The first use of ODR began in the United States of
America.26 Thereafter, ODR has become widespread. It has been used by eBay, the Squar-
eTrade portal, CyberSettle and many other commercial service providers.27 However, it
was only in 2001 that governments began to see the value in ODR. Many noted that
by moving disputes online, the burden on the courts was reduced and the efficiency of
resolving disputes was enhanced.28 For example, the “Money Claim Online” platform is
a judicial ODR platform in England and Wales. The platform resolves legal issues for
fixed sum claims up to £100,000.29
to making machines intelligent, and intelligence is that quality that enables an entity to
function appropriately and with foresight in its environment.”34
The difficulty of finding consensus on the definition of AI is related to the fact that
the term ‘intelligence’ itself is nebulous.35 For the sake of brevity, a working definition
can be lifted from computer science academia: “any device that perceives its environ-
ment and takes actions to maximise its chance of successfully achieving its goals.”36
Again, such a definition is too broad. A refrigerator which monitors temperature and
adjusts its cooling element can accordingly be regarded as acting intelligently. In
the same regard, a hyper-advanced futuristic computer also acts intelligently if it pro-
vides life-counselling advice to stressed office workers. Therefore, one can see that pre-
cision is the key;37 trying to define how a device will perform in an intelligent way
helps to clarify how the device may enhance human abilities.38 However, the very
nature of AI is that it is constantly evolving.39 Therefore, a precise definition is only
ever likely to be suitable only for a short period of time. This paper regards AI to
be a developing and largely theoretically unbridled technology. Whilst the future is
uncertain, it is still arguably possible to examine current trends in AI and ODR in
order to discuss what might occur in the future.
52
Darin Thompson, ‘Creating New Pathways to Justice Using Simple Artificial Intelligence and Online Dispute Resolution’
(2015) 1 International Journal of Online Dispute Resolution 1, 53.
53
Ibid.
54
Amber Jenner, ‘The future of dispute resolution: AI’ (Kennedys Law, 2017) <https://www.kennedyslaw.com/thought-
leadership/article/the-future-of-dispute-resolution-ai> Accessed 21 September 2021.
55
Ibid.
56
Arno Lodder, John Zeleznikow, Enhanced Dispute Resolution Through the Use of Information Technology (CUP, 2012) 92.
57
Jenner (n 54).
58
John Zeleznikow, ‘Can Artificial Intelligence and Online Dispute Resolution Enhance Efficiency and Effectiveness in
Courts’ (2017) 8 International Journal for Court Administration 30, 43.
59
Brooke Abrahams, Emilia Bellucci, John Zeleznikow, ‘Incorporating Fairness into Development of an Integrated Multi-
agent Online Dispute Resolution Environment’ (2012) 21 Group Decision and Negotiation 3.
60
Ayelet Sela, ‘Can Computers Be Fair? How Automated and Human-Powered Online Dispute Resolution Affect Procedural
Justice in Mediation and Arbitration’ (2018) 33 Ohio State Journal on Dispute Resolution 91.
61
Daniel Rainey, ‘Third Party Ethics in the Age of the Fourth Party’ (2014) 1 International Journal of Online Dispute Res-
olution 37, 55.
326 H. ALESSA
Arguably, there exist two primary ways in which AI technology is currently being
employed in the field: either in a support capacity, or a substitutive one. The difference
between the two applications is perhaps best understood via reference to traditional
models of dispute resolution. The traditional model calls for two parties or more negotiat-
ing concurrently with a third-party mediator, arbitrator or similar.62 When AI is used in a
support role, the third party uses it as a tool to accomplish their goal. In other words, their
work is simply enabled or supplemented by the use of AI. When used in a substitutive
capacity, the AI begins to take on the essential functions traditionally associated with
the third party altogether, for example by coming to decisions or making inquiries of
the first and second parties.63 This is not to say that it is necessary for a system to entirely
replace a third-party negotiator. When AI is used in a substitutive capacity, there is no
requirement for an android mediator, but merely that the system deals with a portion
of the third-party negotiator’s work, as further described below. It should be noted that
there is a significant crossover between the two categories, largely predicated on the
level of advancement in the technology. For example a system which calculates the
proper level of compensation to be paid in an industrial arbitration might be supportive
if it takes the form of spreadsheet used by an arbitrator, but can be considered substitu-
tive if that same system could ascertain that a far better fiscal outcome would be to create
trade deals which favour the party that prevails. Nonetheless, the distinction between
supportive/substitutive systems can be used to demonstrate the highest potential
areas of AI in ODR. The next section discusses how these may shape the role of AI in
ODR in the future.
2.2.1.1. Decision support systems. This is arguably one of the most promising current
uses of AI in ODR. It is the area which has witnessed the greatest efforts at development
since the early 90s.65 This is perhaps not surprising – the ability of a system to weigh up
different factors and compute the optimal outcome or course of action is a clear indi-
cation of its efficiency and effectiveness. For example, systems which plotting shipping
lanes, self-driving cars and actuarial software all act on this principle. Therefore, the appli-
cation of these AI processes to dispute resolution is not a particularly novel
62
Carole Silver, ‘Models of Quality for Third Parties in Alternative Dispute Resolution’ (1996) 12 Ohio State Journal on
Dispute Resolution 37, 39.
63
Carneiro (n 9) at 215.
64
Zeleznikow (n 58) at 32.
65
Emilia Bellucci, Arno Lodder, John Zeleznikow, ‘Integrating Artificial Intelligence, Argumentation and Game Theory to
Develop an Online Dispute Resolution Environment’ (2004) Proceedings of the 16th IEEE International Conference on
Tools with Artificial Intelligence 749.
INFORMATION & COMMUNICATIONS TECHNOLOGY LAW 327
development.66 This explains why supportive AI-based systems are sound points for
thorough consideration when it comes to ODR.
Although their exact form and function varies, such systems are best characterised by
their ability to provide information on the level of agreement or disagreement between
two parties.67 For instance, relatively simple situations like an amicable divorce settlement
might be examined. At first glance, it might appear simple for a financial calculation to be
made – a group of objects are given a monetary value and then split down the middle.
However, this fails to take into account the true nature of divorce negotiations – the
value of a given object is not dictated objectively, but subjectively, often in accordance
with certain emotional factors.68 Such factors are by definition abstract and therefore
the ‘true’ value of a given object is also largely abstract. This means that there is a
huge potential for disagreements to drag on as the two parties, even if helped by a tra-
ditional mediator, find themselves having to compare a large number of items against
each other, each with a different subjective value to each party (e.g. a record collection
against a prized mantelpiece ornament.) This is the point at which a decision-making
support system might be used. One such example is the Family Winner system, which
asks each party to list their disputed items, and then give each item a subjective priority
value.69 The system will then employ algorithms to come up with a nominally optimal sol-
ution for distribution, which can then be rejected or accepted. In case of rejection, the
system allows the parties to rank those items whose allocation is contested, so that the
highest priorities of each party might be met.70
Similar systems have also been crafted to guide third parties on the likely satisfaction
that negotiating parties will have with a given outcome, as seen in the SmartSettle sys-
tem.71Similarly, parties provide preferences regarding certain outcomes, e.g. a high
rating for receiving a valuable patent right or a low rating for ownership of a poorly main-
tained building, allowing mediators to establish outcomes that are likely to satisfy each
party. Most notably, parties are able to adjust their wishes as negotiations develop72 –
arguably mirroring the nature of traditional negotiation.
Due to the substantial AI-based ODR development which has occurred, there are a sig-
nificant number of other systems which have emerged utilising AI in ODR. These include
the Adjusted Winner, AssetDivider, ALIS and GetAid systems.73 Although they rely on auto-
mated processes, they still require substantial human input, with third party human
experts guiding the use of the output of each system, as well as often providing a
bridge between the system and the negotiating parties due to the complexity of the
values required for them to work.74 Nonetheless, the application of such systems is
wide. In order to test the geopolitical viability of certain systems, e.g. Adjusted Winner,
they have been applied to historical disputes to ascertain whether their outputs are
66
Efraim Turban, Decision Support and Expert Systems: Management Support Systems (Prentice Hall, 1993) 443.
67
Lodder and Zeleznikow (n 56) at 92.
68
Nial Muecke, Andrew Stranieri, Charlynn Miller, ‘Re-Consider: The Integration of Online Dispute Resolution and Decision
Support Systems’ (2008) 430 CEUR Workshop Proceedings 62, 63.
69
Lodder and Zeleznikow (n 56) at 78.
70
Ibid.
71
Carneiro (n 9) at 228.
72
Ibid.
73
Ibid, 227-229.
74
Michael Araszkiewicz et al., ‘The Role of New Information Technologies in Alternative Dispute Resolution of Divorce
Disputes’ (2014) 1 European Dispute Resolution Journal 549, 552.
328 H. ALESSA
similar to the eventual resolutions of the disputes.75 For example, when Adjusted Winner
was applied to the Israel-Palestine dispute around the time of the Camp David Accords in
the late 70s, it rendered an output which was substantially similar to that offered by the
real Accords.76 Such a pattern was also reported with regard to the Suez Canal Treaty.77
This adds value to how AI and ODR can be sewed together to better serve the parties’
needs in the future as it would have in the past.
2.2.1.2. Knowledge support systems. Although decision support systems provide pro-
cedural support, AI can also be used to provide non-traditional means of accessing infor-
mation relevant to a given dispute. Perhaps an oversimplification, such systems can be
thought of merely as very advanced search engines. However, the complex nature of
advanced ‘knowledge representation’ should not be underestimated.78 Instead, a truly
‘intelligent’ search engine would need to be able to take in the relevant details of a pre-
sented scenario, requiring a sense of understanding and meaning, and ascertaining the
relevant information to present (or omit) in an understandable manner.79 For example,
a knowledge support system might search through rules by examining and applying
those statutory provisions which are relevant to the scenario at hand, and case studies
by taking into account those cases which are similar in nature and therefore give rise
to applicable precedent at the same time. Once both of these tasks are undertaken, it
will be possible to deliver the relevant information for a given scenario.80 It is perhaps
telling that this is a highly difficult manoeuvre81 even in the highly indexed world of
law, and would arguably be orders of magnitude more difficult given some of the ODR
contexts which arise (e.g. industrial disputes which rely on ‘rules’ created only by
course of dealing or which otherwise involve complex knowledge.) Disregarding the
difficulty of designing such systems momentarily, they are arguably highly promising in
that they remove a substantial barrier to the resolution of disputes – the need to ascertain
where exactly the relevant information lies, be it in the form of rules, evidence, or studies
of previous similar disputes.
2.2.1.3. Intelligent interface systems. Rather than a directly supportive system like the
above, intelligent interface systems are those which aim to bridge the significant com-
munication gap between human users and other AI systems, for example by enabling
the use of natural language as inputs and outputs of the system.82 By no means is the
desire to create such systems exclusive to ODR; natural language processing is somewhat
of a holy grail in many AI fields. Nonetheless, the ability to avoid the translation problems
discussed below will be an extremely significant leap within the field of ODR, although
75
Lodder and Zeleznikow (n 54) at 89.
76
Steven Brams and Jeffrey Togman, ‘Camp David: Was the Agreement Fair?’ in Frank Harvey, Ben Mor (Eds.) New Direc-
tions in the Study of Conflict, Crisis and War (Macmillan, 1998) 306.
77
Ibid.
78
John Sowa, Knowledge representation: logical, philosophical, and computational foundations (MITP, 2000) 51.
79
Cade Metz, ‘AI Is Transforming Google Search. The Rest of the Web Is Next’ (Wired, 2 April 2016) <https://www.wired.
com/2016/02/ai-is-changing-the-technology-behind-google-searches/> Accessed 10 September 2021.
80
James Popple, ‘Legal Expert Systems: the inadequacy of a rule–based approach’ (1991) 21 Australian Computer Journal
11.
81
Ronald Brachman, Knowledge Representation and Reasoning (Morgan Kaufmann, 2004) 336.
82
Carneiro (n 9) at 222.
INFORMATION & COMMUNICATIONS TECHNOLOGY LAW 329
until such leaps are made there is little to be said as regards the original contribution of
intelligent interface systems to the field of ODR.
2.2.2.1. Case reasoning systems. Case reasoning systems take knowledge of past out-
comes and apply it to the situation at hand. Thus, an AI which is aware from past experi-
ence or data input that a particular course of action leads to negative outcomes can avoid
that course of action.84 For instance, an AI might avoid suggesting that two divorcing
parties simply burn all of their jointly held possessions as a means of ending a protracted
settlement process, since it is aware that in the past this has led to low satisfaction levels.
There is a clear potential for such systems in the area of ODR, especially where disputes
are subject to legal and quasi-legal systems due to the tendency for clear documentation
of the facts of cases and statements regarding the exact reasoning behind a certain
decision.85 Thus, a dispute before an AI third party which is similar can be decided in a
manner which takes account of the success or validity of previous cases. It should be
noted that there is no direct need for such AIs to learn directly – they can be programmed
to recognise important variables from the start, as is the case with the Split-Up AI.86 In
order to provide suggested divorce settlements, the system looks for the presence of
94 different factors - child care arrangements, income etc. – and then provides sugges-
tions based on the outcome of previous cases which exhibit similar factors.87
Although seemingly simple, (after all, traditional third parties rely on their previous
experience) there remain significant difficulties in ‘teaching’ AIs to differentiate
between relevant and irrelevant details.88 Nonetheless, cases of low complexity may
well benefit in the near future from such technology: for example an AI working for an
online sales platform like Amazon or eBay might realise, via previous feedback on custo-
mer satisfaction, that low value disputes regarding items not being sent are far easier
settled by quick compensation from its own coffers rather than via protracted investi-
gations into what has actually occurred.89 The PERSUADER system, which deals with
83
Carneiro (n 9) at 224.
84
A Aamodt, E Plaza, ‘Case-based reasoning: foundational issues, methodological variations, and system approaches’
(1994) 7 AI Communication 39.
85
Carneiro (n 9) at 223.
86
Lodder and Zeleznikow (n 56) at 82.
87
Ibid.
88
Carneiro (n 9) at 223.
89
Anna Tims, ‘If eBay’s customers are always right, who will protect its sellers?’ (The Guardian, 2014) <https://www.
theguardian.com/money/2014/jul/11/ebay-buyer-complained-decide-against-seller> Accessed 15 September 2021.
330 H. ALESSA
labour disputes, retains the results of each case it has dealt with so that it might be
more efficient in the future, both in removing the need to evaluate each novel case
in its entirety and by employing solutions which have previously been shown to be
effective.90
Nonetheless, it can be argued that there have been attempts to automate the more
abstract or human aspects of dispute resolution. For example, the SmartSettle system
allows the use of ‘satisfaction values.’105 Consequently, something which would tradition-
ally be regarded as a personal and internal experience can be translated into something
which can be grappled with by a machine.106 Although it might appear that this is a more
direct connection between the user and the system, it can be countered that this process
does not represent the machine ‘understanding’ the desires of a human party; rather it is a
codification of the avowed human experience that enables the machine to match certain
preferences with certain outcomes. There is a vast difference between a mediator under-
standing a party’s desire to, for example, repair a relationship with a previously antagon-
istic business partner and a system’s rating of that desire as a ‘9/10 priority;’ AIs lack the
ability to see the qualitative ‘worth’ of a solution. They cannot consistently use human
emotions in a positive way to enhance communication or defuse conflict.
It can be further argued that distributive benefits are only half the story. In a significant
number of disputes the parties seek an acknowledgement that they are “right.”107 This
highlights one of the major issues facing the use of AI in ODR; namely, that certain
desires might not be achievable via the application of AI. Instead, they require direct
human interaction. It is notable that regardless of outcome, there is a higher satisfaction
level associated with traditional face-to-face ADR than ODR. This is arguably due to the
openness and officiousness of the process.108 It is exacerbated where an individual has
hidden values, which an AI machine cannot access or even suspect. As described
above, the Israel-Palestine dispute has been subjected to the Adjusted Winner system.
The solution provided chimes with that provided by some of the foremost experts of
the time. Nevertheless, it can be seen that even the most “optimal” solutions were redun-
dant due to subversive human values; for example, an inherent distrust of other parties.109
This is because rational systems often struggle with irrational values, which could easily be
understood by human third party.
Furthermore, it can be argued that in seeking to translate human desires certain desires
may be obfuscated by negotiating parties. For example, people are unlikely to openly state
their desire to be “right;” fearing that they will be seen egotistical or prejudicial. This is not to
say that the in-building of such inputs is impossible. To the contrary, it has been suggested
that via the proper inputting of background information on parties, innate desires such as
this might be catered for.110 For example, in order to maintain an even-keeled negotiating
environment, a party who is regarded as prone to nervousness might be offered a minor
concession on the basis that this will relax their attitude towards future points of
dispute.111 However, the lack of willingness of individuals to be privy to such profiling pro-
cesses and their concurrent desire to hide information that might aid these processes is
105
Carneiro (n 9) at 228.
106
Ibid.
107
Thomson Reuters, The Impact of ODR Technology on Dispute Resolution in the UK (Thomson Reuters, 2016) 19
Available at: https://blogs.thomsonreuters.com/legal-uk/wp-content/uploads/sites/14/2016/10/BLC_ODRwhitepaper.pdf
[Accessed 20 September 2021].
108
Ibid.
109
John Zeleznikow, Emilia Bellucci, ‘Using Asset Divider to investigate the Israel - Palestinian dispute’ (6th International
Workshop on Online Dispute Resolution, December 2010) <http://ceur-ws.org/Vol-684/ODR2010proceedings.pdf>
accessed 26 September 2021.
110
Carneiro (n 9) at 237.
111
Ibid.
INFORMATION & COMMUNICATIONS TECHNOLOGY LAW 333
arguably a large obstacle to overcome. This is of course not an issue which is inherent to the
use of AIs in ODR, but rather a limitation which may be dealt with by human third parties
without their explicit knowledge that this is what they are doing.112
This issue is further aggravated by the fact that a human needs to enter (and some-
times interpret) the relevant information, regarding the dispute, into AI system.113 This
means that any AI-driven systems operate at the whim of the third-party operator, who
will be privy to their own prejudices and failure to notice relevant factors in the parties.
Consequently, this will curtail the ability of AIs to render solutions which might be
more effective than those noticed by traditional third parties. However, if this can be over-
come, AI can introduce ‘out of the box’ thinking.114 Nevertheless, the prospect of devel-
oping this technology is somewhat of a chicken-and-egg situation. Without sufficient
advancement, there is a lack of willingness to use AI-systems on qualitative, rather than
quantitative, matters. At the same time, without a will to use AI-systems to address quali-
tative issues, the avenues for advancement are slim due to a reliance on older models of
human-machine interface, which reduces the role of AI in ODR.
system is learning from past successes, it is foreseeable that it will develop efficient tem-
plates to deal with future disputes. Thus, the AI system will have an incentive to ensure
that the disputes that it deals with fit those templates. For example, a scenario can be con-
sidered in which a number of workers for a mining company call for a strike, on the basis
that the company’s healthcare policy does not cover certain industry-related diseases. A
well-trained labour dispute AI system might have deduced from previous experience that
the most efficient way to deal with labour disputes is to simply offer pay rises. Whereas a
traditional third party is likely to recognise the benefit of an expanded healthcare policy.
Such an example demonstrates the downside to employing systems which perpetuate a
norm of maximised efficiency, unless the norms they create are explicitly resisted, they
can have unintended effects.124
This is not to say that the creation of certain norms is entirely negative.125 For example,
eBay’s dispute resolution process solves more than 60 million conflicts a year.126 Arguably,
the quasi-objective nature of its automated ODR processes could be used as an opportu-
nity to defuse previously stressful situations: parties who might be described as “deadbeat
buyers” were instead described by their ODR tool as “non-paying bidders.”127 This can be
regarded as an example of the static, uncompromising nature of computerised systems
conferring an additional benefit to ODR.
There is also substantial value in doubting the abilities of AI systems to operate entirely
holistically in the case of ODR. As noted above, AI systems are just as prone to the effects
of randomness as any traditional third party. Therefore, whilst AI systems might become
exceedingly efficient in their processes, they should not be thought of as acting perfectly.
In short, the value of proper oversight should not be disregarded, particularly in the field
of high-stake negotiation processes.129
Finally, there is much to be said for an awareness of the norms that might inadver-
tently be soft-coded into an AI-ODR system. Rather than blindly accepting the per-
ceived wisdom of AI systems, questions should be asked regularly of the ODR
culture that is being created by those AI systems and how that culture is affected
by the dispute resolution process. It will also be necessary for such norms to be re-
examined at regular intervals. This will ensure that AI systems do not find themselves
making faulty assumptions, as a result of their past experiences.130 Although this “hill-
climbing problem” is well known,131 no substantially developed solution exists. None-
theless, this is not to say that all norm-setting will be detrimental. As noted above,
ODR systems have the potential to deescalate and sanitise those disputes which
would proceed negatively in a traditional ADR environment. Further, as long as
there is a keen awareness of the effects, the latter can be used for positive ends,
not negative.
long before they became commonplace. It can be argued that will also occur with AI-ODR
techniques.134 Thus, just as state-appointed mediators have been made part of the tra-
ditional judicial sphere, it can be predicted that a similar phenomenon will occur with
AI-based ODR.135 This appears more likely when one considers the advantages that the
technology might one day have over traditional third parties, such as more effective
and swifter communication and costs reduction.
As such, the argument that AI will one day fulfil a demand within ODR is not beyond
the imagination. Many individuals find themselves involved in civil disputes, without the
ability to pay for the services of a professional advisor (e.g. lawyers, dispute resolution
experts).136 Instead, these disputants are left to either self-represent or refuse to pursue
what are often rightful claims.137 This is aggravated by several factors, including court clo-
sures and increased fees.138 Furthermore, the lack of legal aid is problematic. Unless indi-
gent individuals find themselves lucky enough to receive the services of a pro bono lawyer
or legal aid (an unlikelihood in the wake of the Legal Aid, Sentencing and Punishment of
Offenders Act 2012),139 their ability to access justice is reduced significantly. This indicates
that there exists a gap in the market. Where traditional human actors involved in the
dispute resolution process are expensive, AI systems are likely to be relatively cheap
after a few years of operation, subject only to maintenance costs, once they have been
sufficiently developed.140
Moreover, AI in ODR may help an individual receive help finding professional advisors.
For example, the GetAid system allows the process of applying for legal aid to be auto-
mated, freeing up significant resources, which could be deployed elsewhere.141 There
is little to suggest that this process might not occur in all areas of dispute resolution.
Labour intensive processes could be undertaken by an AI system, freeing up resources
which may be employed elsewhere. Therefore, the resolution process may become
cheaper and easier for everyone involved. This is what systems like Family_Winner have
achieved to a certain extent; lowering the cost of professional divorce settlement to
make it available to a wider market. Also, in the case of the ODR systems used by eBay
and PayPal, AI is employed as a means of promoting access to justice for consumers, or
traders who would ordinarily not have access to dispute resolution processes.142 In con-
trast, if these disputes were solved using traditional methods of dispute resolution, settle-
ment would require more time and effort, wasting important resources. This often leads
to litigants having no choice but to lose their claims or opportunities to enforce their
rights.143 It is therefore unsurprising that more than 80% of the disputes that have
134
Carrie Menkel-Meadow, ‘Ethics in Alternative Dispute Resolution: New Issues, Now Answers from the Adversary Con-
ception of Lawyers’ Responsibilities’ (1997) 38 South Texas Law Review 408, 413.
135
Jenner (n 54).
136
Zeleznikow (n 58) at 30-31.
137
Ibid.
138
‘Access to Justice’ (The Law Society, 2018) <http://www.lawsociety.org.uk/policy-campaigns/campaigns/access-to-
justice/> accessed 22 September 2021.
139
Catherine McKinnell, ‘Lawyers can’t be expected to plug the gap in legal aid provision’ (The Guardian, 2015) <https://
www.theguardian.com/commentisfree/2015/nov/06/lawyers-legal-aid-lawyers-justice> [Accessed 20 September
2021].
140
Zeleznikow (n 58) at 32-33.
141
Ibid at 37.
142
Rule (n. 96).
143
Lilian Edwards and Ashley Theunissen, ‘Creating Trust and Satisfaction Online : How Important Is ADR? The UK EBay
Experience’ [2006] Connecticut Law Review 1.
338 H. ALESSA
been settled by eBay involved the use of an AI software.144 This evidences the clear poten-
tial of AI in the future of dispute resolution. One may then wonder how many disputes can
be resolved on a daily basis if this technology is developed and rendered available around
the globe.
Arguably, if such technology can resolve the simplest claims, complex cases, which
may normally struggle to receive sufficient court time, will get the diligence they
require. However, this is not without drawbacks. For example, using AI to resolve disputes
relating to minor criminal offences (such as speeding) may certainly reduce the burden on
the courts, but does not enhance the fairness of outcomes. It is likely that many individ-
uals would lack the awareness that by pleading guilty, they would be accepting a criminal
offence on their record. This would be particularly problematic for individuals who are
subjected to DBS checks. As such, the implementation of AI in ODR, must be done with
caution. A similar scenario can be said to have emerged in the public sphere in the
case of the DoNotPay service, which subjects simple citizen-government disputes (i.e.
parking tickets) to an automated ODR service.145 Nonetheless, what these examples
show is that AI in ODR should not be regarded as a complex technology which will even-
tually be simplified for majority use. It is sometimes a ‘trickle-up’ technology, one that is
relatively simple when applied widely, but might be tailored and developed into more
complex forms for minority use.146
144
Sanjana Hattotuwa, ‘Conversation with Colin Rule, Director of Online Dispute Resolution for EBay and PayPal’ (Ict for
Peacebuilding, 2006) <https://ict4peace.wordpress.com/2006/09/21/conversation-with-colin-rule-director-of-online-
dispute-resolution-for-ebay-and-paypal/> accessed 10 September 2021.
145
Gibbs (n 95).
146
Jason Kornwitz, ‘Why ’trickle-up’ innovation may shape the global economy’ (Phys.org, 2012) <https://phys.org/news/
2012-07-trickle-up-global-economy.html> [Accessed 15 September 2021].
147
Jenner (n 54).
148
Ibid.
149
Runddy Ramilo, ‘Critical analysis of key determinants and barriers to digital innovation adoption among architectural
organizations’ (2014) 3 Frontiers of Architectural Research 431.
INFORMATION & COMMUNICATIONS TECHNOLOGY LAW 339
behind the 5 million people in the UK who have never used the Internet.150 Consequently,
education must precede deployment to support individuals to engage in the digital
world.151 Thus, if AI-based ODR becomes the primary means of solving disputes, and
without any analogue alternative, it may well prevent a certain stratum of society from
accessing justice.
It can also be asserted that once AI has been sufficiently developed in the private
sphere, a two-tier dispute resolution system may be created. This will be composed of
expensive service providers with access to highly efficient AI systems, and cheaper
service providers who do not. This is arguably not hard to imagine. For instance, once pre-
liminary supportive AI services are developed in the area of knowledge support, a gap
develops between those parties. On the one hand, some individuals have access to AI
systems and are able to deal with large amounts of disclosed documents very quickly.
In contrast, those who have to deal with that same volume manually are seriously disad-
vantaged. Jenner describes this as a ‘knife to a gun-fight’ scenario.152 If this occurs,
particularly in complicated commercial disputes involving many corporations, there
may be an inequality of arms; thereby, leading to a scenario where only some parties
have access to justice.153 Arguably, this is likely to be a common feature since the
current concentration of AI research related to complex commercial cases suggests an
association between the development of AI systems and wealthy commercial firms.154
For example, Susskind indicates that the ‘magic circle’ law firms have already signed up
and invested with AI provider.155 In this regard, only those individuals that can afford
such law firms will benefit.
Notwithstanding this potential disadvantage, one might argue that it is also a problem
with litigation and traditional ADR mechanisms. For example, one party is able to afford a
multi-person legal team made up of Queen’s Counsel and magic circles lawyers; whilst the
other may only be able to afford high-street lawyers. Nevertheless, AI does not make any
original significant contribution to dispute resolution if it is unable to overcome common
obstacles confronted by litigation and traditional ADR mechanisms. As it stands, an indi-
vidual can opt for free dispute resolution services (if available, depending upon the law in
issue) and thereupon can decide to pay more for better and more comprehensive
services – for example by hiring a magic circle law firm to assist in arbitration. The
market is on a gradient, with a correlation between quality of outcome and cost of
lawyer.156 As such, as long as an individual or company is of moderate means, they
may well be able to afford representation which is commensurate with the value or com-
plexity of the case. In contrast, if a two-tier system develops, there will be a marked differ-
ence between those companies that are able to deploy advanced dispute resolution
technologies like AI systems and those that cannot. A situation might therefore
150
Emma Bailey, ‘Digital by Deftaul?’ (We are Citizens Advice, 2018) <https://wearecitizensadvice.org.uk/digital-by-default-
e91f6711927> accessed 22 September 2021.
151
Ibid.
152
Jenner (n 54).
153
Richard Chernick, ‘ADR Comes of Age’ (2004) 4 Pepperdine Dispute Resolution Law Journal 187.
154
Carneiro (n 9) at 219.
155
Richard E. Susskind, Tomorrow’s Lawyers : An Introduction to Your Future (OUP 2017).
156
Chris Hanretty, ‘Lawyer rankings either do not matter for litigation outcomes or are redundant’ (2016) 23 International
Journal of the Legal Profession 185.
340 H. ALESSA
develop where the determinative factor, in any given dispute, is not which party is in the
right, but rather which party has access to AI technology.
The disparity of a two-tier system might further evolve, via the erosion of those
dispute resolution services which are used by those who cannot afford premium pro-
viders. Precursor AI systems tend to be employed to deal with those tasks which
require less experience: low-level cases, document and case management. These
also tend to be those tasks which are performed by junior lawyers or legal assistants,
due to the low experience threshold.157 At the same time there is a tendency for junior
lawyers to be the providers of pro bono services, due to the correlation between
simpler cases and clients who lack means.158 Complex and high value commercial
cases on the other hand tend to involve companies with the ability to pay for the
required level of advice. It can therefore be argued that the development of AI in
ODR may reduce the availability of pro bono advice.159 This is because there will be
a lower demand for junior lawyers, since their functions will be replaced by AI
systems.160 Obviously, there will still be junior lawyers (else how might senior
lawyers exist?) but they will, in the future, find themselves operating outside of
major firms that can afford AI replacements for their labour. They are likely to
instead be part of far smaller satellite firms that are less capable of offering pro
bono or low cost services.161 Thus, with the absence of junior lawyers in large firms,
the availability of a pro bono workforce may be lowered.162
It can further be contended that a market dumping phenomenon may occur. AI will be
either purposively or inadvertently used to reduce the proportion of the market that pro
bono or low-cost lawyers hold. At the same time, AI systems can be offered as a replace-
ment for those lawyers; thus, securing the hold of AI upon the market as the primary
alternative for those who can only access lower cost or free legal services. Whether
such a phenomenon is a concern for access to justice on the whole is dependent on
how accessible those replacement AIs are to the average disputant. If access is guaran-
teed through either charitable intent on the part of the developers or government regu-
lation, then the proposed phenomenon will be of little danger to access to justice.
Conversely, if mismanaged, the phenomenon has the potential to affect in a negative
manner how the traditionally disempowered access justice.
Even if such a phenomenon does not take place, it can further be contended that by
design, it is likely that there will be an emphasis on AI-led ODR dealing with lower value
cases. Indeed, this is the future predicted by Lord Justice Briggs in his call for the creation
of online court systems, with a financial threshold that must be crossed before access to
traditional courts is permitted.163 This will be of little import if fully competent AI systems
are developed which can match those services that might be provided by traditional third
157
Art Cockfield et al, ‘How will artificial intelligence affect the legal profession in the next decade?’ (Queen’s University,
2018) <https://law.queensu.ca/how-will-artificial-intelligence-affect-legal-profession-next-decade> [Accessed 20 Sep-
tember 2021].
158
The Law Gazette, ‘Record number of junior lawyers working pro bono’ (Law Gazette, 7 November 2013) <https://www.
lawgazette.co.uk/practice/record-number-of-junior-lawyers-working-pro-bono/5038629.article> [Accessed 26 Septem-
ber 2021].
159
Ibid.
160
Cockfield (n 157).
161
Ibid.
162
Jenner (n 54).
163
Lord Justice Briggs (n 8).
INFORMATION & COMMUNICATIONS TECHNOLOGY LAW 341
parties. However, there is good reason to believe that there will be a marked difference in
the nature of the justice meted out in a two-tier court system such that the message sent
is essentially that the progression of a case is dependent not on the notion of justice but
rather on the notion of financial value. In other words, although a two-tire court system
will facilitate litigation of the larger and complex cases (as courts will essentially deal with
such cases), access to justice might become the preserve of the rich, with only an
AI facsimile available to the poor.
5. Conclusion
This paper has critically examined the role that AI currently plays in shaping ODR, and how
that role might develop in the future to enhance the efficiency of ODR as regards the
settlement of legal disputes. It is shown that advances in technology and the continuous
increase in transnational transactions interconnecting developed and developing
countries will inevitably augment the demand of AI systems to settle disputes.
342 H. ALESSA
Historically, AI has played a role in the application of justice, preservation of rights, and
the promotion of social values. AI has been described as a phenomenon that shapes the
nature of legal discourse in ODR – as a so-called ‘fourth party’ negotiator. Hence, it is not a
mere tool to aid resolution, like a telephone or a calculator, but rather a means of resol-
ution or forum in itself. However, many commentators have observed that AI in ODR has
faced the same problem that has beset other applications of AI: slower than expected
development. The analysis in this paper therefore posits as a pattern which is true for
AI research and implementation: an explosion in optimistic predictions, followed by a
recalibration of expectations once the realities of the technology become apparent.
However, there is good reason to believe that the ultimate benefit of AI in ODR will be
the creation of highly supportive systems which will uncork bottlenecks in the judicial
system and replace red tape and litigation with a process that is even more efficient
than traditional ADR models. Nonetheless, this will likely result in a two-tiered system
of dispute resolution. The consoling prospect is that although wealthier organisations
and their clients will have access to advanced AI technologies before others, over time
it is likely that the technologies will spread and become more prolific at all levels.
Nonetheless, blind reliance on AI systems could be detrimental if they are not re-exam-
ined periodically and regularly. Leaving the wisdom of AI to develop its own parameters
on dispute resolution may cause it to drift away from what it was created for in the first
place. Accordingly, critical observation of how the AI-based ODR culture evolves is of
paramount importance. Another issue that weighs the same if not more to machine trans-
lation is if AI-based ODR adversely affects access to justice. Thus, it is imperative that AI-
based ODR does not develop into an obstacle that exacerbates the problem of access to
justice for the less affluent. Ensuring that AI-based ODR complies with access to justice
standards will further enhance its effectiveness and efficiency as a dispute resolution
tool or forum.
Disclosure statement
No potential conflict of interest was reported by the author(s).