In a mainly referred to as a landmark step the AAA-ICDR (American Arbitration Association–International Centre for Dispute Resolution) has introduced its AI-Native Arbitrator which is going to be the first in the world. The AI arbitrator can cater to the ever-increasing demand for speed, lower costs, and higher trustworthiness in dispute resolution with its decision that be the mushrooms in November 2025, specifically for documents-only construction cases which is the sector that can really benefit from such traits.
Launched in partnership with QuantumBlack, AI by McKinsey, and based on human legal reasoning as well as training by more than 1,500 construction awards, the AI arbitrator uses a combination of structured legal prompt library and conversational AI to claim analysis, recommend soundly reasoned awards, and draft them. The decision is then subjected to a human-in-the-loop review where seasoned arbitrators evaluate the decision and, if need be, modify the result to confirm fairness, transparency, and due process.
“The legal business can no longer afford escape route to say no to developing technologies,” said Bridget Mary McCormack, President and CEO of AAA-ICDR. “Our AI adjudicator is the very embodiment of the future of justice, fast, completely open and reliable carrying with it the almost a century trust in our process.”
Diana Didia, executive vice president and chief technology and innovation officer, pointed out that ethics and accountability are the main themes of this innovation.
The AI arbitrator will first be used in the construction area and then it will be moved to other industries and high-value disputes in 2026. Before its general availability, the system will be showcased at the Future Dispute Resolution - New York Conference.
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