Introducing the New AAA-AI Arbitrator

Adams & Reese Construction team co-leader Trent Cotney was among nine US arbitrators selected on a panel to assist with the rollout of the AAA AI model. 

The American Arbitration Association–International Centre for Dispute Resolution (AAA-ICDR) has introduced an innovative AI arbitrator designed to transform the dispute resolution process, particularly in the construction sector. This AI solution is positioned as a fast, cost-effective, and reliable tool that operates within an intuitive, user-friendly platform. The AI arbitrator is not intended to replace human judgment but to enhance the efficiency and quality of arbitration by supporting human arbitrators with advanced analytical capabilities.

Key Features and Advantages

• Proprietary Training: The AI arbitrator is uniquely trained on actual AAA construction awards rather than generic legal texts. This specialized training allows the AI to reflect authentic arbitrator logic and legal reasoning, making its analyses more relevant and accurate for construction disputes.
  
  
• Human Validation: At every stage, human oversight is integral. Parties involved in a dispute can review and confirm that the AI has accurately summarized their claims and submissions. After the AI drafts a proposed award, an experienced AAA human arbitrator reviews, revises, and finalizes the decision, ensuring that the final award is fair, logical, and legally sound.
  
  
• Ethical and Responsible AI: The AAA has embedded its ethical frameworks and standards into every layer of the AI platform. This commitment ensures transparency, accountability, and adherence to due process principles. A dedicated AI Governance Committee oversees compliance, ethics, and the quality of model outputs.
  
  
• Efficiency and Cost Savings: The AI arbitrator is designed for high-volume, documents-only construction cases where speed and efficiency are crucial. Early testing indicates that the AI arbitrator can deliver 20–25% faster resolution times and at least 35% cost savings compared to traditional arbitration methods.

• User-Friendly Experience: The platform is intuitive, allowing parties to quickly and easily initiate and manage their cases. The process is streamlined to minimize complexity and maximize accessibility.

How the AI Arbitrator Works

• Parties submit their claims and supporting evidence through the platform.
  
  
• The AI arbitrator summarizes the submissions, and parties validate the accuracy of these summaries.
  
  
• The AI analyzes the claims, reviews the evidence, applies relevant law, and drafts a proposed award.
  
  
• A human arbitrator, trained specifically for AI-led cases, reviews the AI’s draft, makes any necessary revisions, and issues the final, binding award.

Frequently Asked Questions

• Decision-Making: The AI does not make final decisions independently. Every award is reviewed and finalized by a human arbitrator.
  
  
• Human Judgment: The AI serves as an analytical tool; human legal judgment and ethics remain central.
  
  
• Data Training: The AI is trained on real, confidential AAA construction awards, ensuring domain-specific expertise.
  
  
• Transparency: While parties do not see the AI’s draft award, they can review how their submissions are summarized before the human arbitrator’s review.
  
  
• Participation: Use of the AI arbitrator is entirely optional and requires agreement from both parties.
  
  
• Scope: The AI arbitrator is currently focused on straightforward, documents-only construction disputes and is not yet suitable for complex or highly subjective cases.
  
  
• Fairness and Trust: The AAA’s longstanding reputation for fairness is maintained through rigorous oversight, ethical standards, and transparent processes.
  
  
• Error Correction: The human arbitrator is responsible for identifying and correcting any deficiencies in the AI’s analysis before issuing the final award.