Under the UAE National Strategy for Artificial Intelligence (AI) 2031, various sectors, including the field of dispute resolution, are witnessing AI’s transformative power.
Law practitioners working within the UAE’s dynamic legal landscape are undoubtedly witnessing the rapid integration of AI in the country’s dispute resolution sector, as the UAE continues to solidify its reputation as a global hub for innovation and technology.
With the UAE leading the charge—having appointed the world’s first Minister of AI back in 2017 and launching initiatives like the UAE Centennial 2071 plan—it is clear that AI is set to become an indispensable tool in legal processes.
This article will explore how AI is already reshaping dispute resolution in the UAE, its potential ahead, and the legal and ethical challenges that come with these advancements.
UAE dispute resolution
The UAE has a rich ecosystem for resolving disputes, whether through local courts, the Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM) free zone courts, or arbitration centres like the ICC International Court of Arbitration which in 2021 opened its fifth case management office in the ADGM arbitration centre. Traditionally, these institutions have relied heavily on human expertise. But today, AI is rapidly becoming a game-changer, offering innovative ways to streamline proceedings and reduce bottlenecks.
AI applications
AI in litigation: AI tools are already playing a significant role in litigation by automating tedious tasks such as document review or predicting case outcomes based on past rulings. The ability of AI to assist in e-discovery has drastically reduced the time and costs associated with traditional processes. For instance, the DIFC Courts have issued a novel set of guidelines for using AI-generated content in litigation.
AI in mediation: The Mediation Committee of the International Bar Association (IBA) has issued draft guidelines on incorporating generative AI into mediation. These guidelines seek to blend AI with mediation practices, safeguarding essential principles such as neutrality, confidentiality, and party autonomy.
AI in arbitration: Arbitration’s flexible nature has made it an ideal setting for AI integration. From AI-driven case management, to procedural automation, to systems that assist in drafting arbitration awards, the possibilities are vast. In the near future, AI might even take on more central roles, such as selecting arbitrators or suggesting potential settlements based on case data.
Challenges and legal implications
As exciting as AI is, it also brings challenges. Issues like data privacy, algorithmic bias, and reduced human oversight raise important ethical questions. AI is only as unbiased as the data it is trained on. If that data reflects societal or historical biases, there is a risk of perpetuating unfair outcomes. Ensuring transparency and fairness in AI-driven decision-making processes will be crucial.
While AI offers efficiencies, it is however essential not to lose sight of the value of human judgement in dispute resolution. Striking the right balance between AI’s support and the role of human expertise will be key to preserving the integrity of the legal system.
That said, the UAE has begun to implement strong data protection safeguards through various laws, such as:
- The UAE Federal Law No. 45 of 2021 on the Protection of Personal Data (PDPL): Issued in 2021, the PDPL is the UAE’s first comprehensive federal data protection law which aligns with international data protection standards, such as the EU’s General Data Protection Regulation (GDPR). It applies to companies operating in the UAE, excluding free zones with their own regulations like the DIFC and ADGM.
- The DIFC Data Protection Law No. 5 of 2020: The DIFC has its own data protection law, which aligns closely with the GDPR and applies to companies operating within the DIFC free zone.
- The ADGM Data Protection Regulations 2021: These regulations govern data protection in the ADGM free zone, also closely aligned with GDPR principles.
Similarly, the ICC highlighted the need for a robust governance framework, essential to maximise the benefits of AI while addressing potential risks. As announced in Mexico on September 14, 2024, the Steering Committee of the ICC Commission on Arbitration and ADR has decided to create a new task force on AI in international dispute resolution.
AI is undeniably shaping the future of dispute resolution in the UAE, offering new efficiencies, reducing costs, and making justice more accessible. While legal practitioners must carefully navigate the ethical and regulatory challenges that come with this technological shift, there is no doubt that AI will be central to the UAE’s evolving legal landscape. For lawyers in the dispute resolution field, staying ahead of these changes will be essential to thriving in this AI-driven future, and most importantly safeguarding the access to justice and the credibility and respectability of the dispute resolution mechanism.
By Karim Nassif, vice-chair of the ICC Commission on Arbitration and ADR, and principal at Nassif Arbitration, and Sanam Pouyan, associate at Nassif Arbitration.
