"For an established dispute-resolution organization that is turning 100 next year, the American Arbitration Association seems to be doing everything but acting its age. Long among the world's leading providers of human arbitrators and mediators for a range of disputes, the AAA is now preparing to launch its first AI-powered arbitrator in November. The AI arbitrator will initially handle documents-only construction cases, a high-volume area where the organization sees efficiency and speed as particularly valuable."
"In an interview for my LawNext podcast that will air next week, Bridget Mary McCormack, the AAA's president and CEO, projected that the AI arbitrator could reduce the cost to parties of construction arbitration by 30 to 50 percent and the time required for a case by 25 to 30 percent at launch, with those metrics improving as the technology advances."
The American Arbitration Association will launch an AI-powered arbitrator in November to handle documents-only construction cases. The system automatically evaluates case merits, generates recommendations, and prepares draft awards for review by human arbitrators. Projected launch efficiencies include a 30–50% reduction in party costs and a 25–30% reduction in case time, with further improvements expected. The system was trained on more than 1,500 actual construction awards and built around legal reasoning with human arbitrator input. Expansion plans target insurance payer–provider disputes and other high-volume, lower-dollar matters to increase speed and lower costs.
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