Introducing enhanced arbitration model using artificial intelligence for swift and equitable resolution of small claims disputes

Arbitration, while effective for complex commercial disputes, faces significant challenges in small-claim disputes due to the high costs and complex processes that can outweigh the dispute’s value and hinder swift resolution. By employing qualitative research methodology, this innovation introduces an enhanced arbitration model using artificial intelligence for swift and equitable resolution of small claims disputes. By analysing both primary and secondary data through critical and analytical methods, the innovation underscores the critical need for integrating artificial intelligence in arbitration to address these challenges. It recommends a novel dual-phase dispute resolution model, starting with an Intelligent Arbitrator (IA) to exploit technological efficiency and speed. In the event that either party finds the arbitral award rendered by the IA to be unsatisfactory, a secondary phase of the model allows for a human arbitrator’s involvement. This subsequent intervention is predicated on the stipulation that the party challenging the IA’s arbitral award assumes responsibility for the related costs to avoid strategic delay in resolution. This innovative approach not only streamlines the resolution process for small claim disputes but also pioneers the use of artificial intelligence in dispute resolution, suggesting a model for future adaptations and improvements in arbitration practices.