Use of AI in arbitration: Privacy, cybersecurity and legal risks

Use of AI in arbitration: Privacy, cybersecurity and legal risks

Use of AI in arbitration: Privacy, cybersecurity and legal risks

https://www.cdr-news.com/categories/expert-views/use-of-ai-in-arbitration-privacy-cybersecurity-and-legal-risks/

Publish Date: 2026-05-05 03:59:00

Source Domain: www.cdr-news.com

Dr Ilia Kolochenko of ImmuniWeb shares his cross-disciplinary experience in cybersecurity, digital forensics and cyber law over the emerging risks of AI usage in alternative dispute resolution.

Lawyers and law firms have been in the crosshairs of cybercriminals for years [1], however, with the proliferation of AI technologies into our personal and professional lives, legitimate businesses around the world are bringing more cybersecurity troubles and privacy risks to arbitration professionals than nefarious cybercriminals and even state-sponsored cyber gangs.  

Since early 2023, the technical and legal risks of using AI in legal practice, be it judicial or arbitral proceedings, have been well known [2]. Three years later, most of them have surged both in terms of quantity and complexity. In arbitration specifically, an imprudent use of AI by arbitrators may trigger grave consequences up to setting aside the arbitral award. As to lawyers representing parties in alternative dispute resolution (ADR) proceedings, they risk disciplinary actions and subsequent sanctions, which become more severe and harsher as AI becomes the new normal and the related errors are no longer tolerated. Even expert witnesses, hired to testify before arbitral tribunals, are exposed to a plethora of AI-driven risks by storing or handling sensitive data of a party without due precautions. This article will provide a concise overview of the most frequent traps and pitfalls of AI usage in arbitration practice.

Today, there is a general consensus that AI tools and solutions can assist arbitrators and other participants of arbitration proceedings by intelligently automating laborious tasks. AI automation ranges from analysing large volumes of discovery data and summarising judicial documents to assisting with legal research when, for example, applicable rules of arbitration or evidence are silent on a convoluted procedural question or novel technical detail. However, the automation has…

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