- Seeks global rules, stronger safeguards for emerging technology

Artificial Intelligence may revolutionise international arbitration by making dispute resolution faster, cheaper and more efficient, but it must never be allowed to replace human judgment, a Professor of International Law at Obafemi Awolowo University, Ile-Ife, Professor Adeola Ayodele Oluwabiyi, has warned.

Oluwabiyi gave the warning while delivering the 428th Inaugural Lecture of OAU and the 11th inaugural lecture of its Faculty of Law, titled “Harnessing Artificial Intelligence in International Arbitration.”

She said the increasing deployment of AI in international arbitration presented enormous opportunities for the legal profession, particularly in legal research, document review, evidence analysis, case management, hearing transcription and decision support.

According to the professor, AI can significantly reduce the time and cost associated with international commercial arbitration, especially in disputes involving thousands of pages of documents and complex procedural issues.

She cited AI-powered tools capable of analysing contracts and large volumes of legal materials, with some reportedly reducing contract-review time by between 20 and 60 per cent.

Oluwabiyi also noted that AI systems were increasingly being developed to predict possible litigation and arbitration outcomes, assess potential compensation and analyse cases, giving parties greater insight into the possible consequences of pursuing particular disputes.

But the academic warned that the technological revolution comes with significant dangers, particularly where AI-generated information is accepted without rigorous human scrutiny.

She identified inaccurate or irrelevant outputs, algorithmic bias, discrimination, data-security vulnerabilities and confidentiality breaches among the major challenges confronting the adoption of AI in international arbitration.

Wrong or biased data used to train AI systems, she explained, could produce distorted outcomes and entrench unfair patterns.

The professor consequently advocated appropriate human oversight and responsibility, insisting that arbitrators and other practitioners must examine AI-generated results for errors, bias and contextual limitations before relying on them.

She also called for greater transparency, saying parties should, where appropriate, be informed when AI is deployed in arbitration proceedings, the extent of its use and the safeguards put in place to prevent algorithmic bias or excessive reliance on machine-generated conclusions.

On confidentiality, Oluwabiyi warned that the use of AI could expose sensitive arbitration materials to third-party systems, making robust cybersecurity protocols and strict data-protection safeguards imperative.

She said arbitration institutions and lawmakers must urgently review existing procedural rules to accommodate emerging technologies, including provisions addressing ethical oversight, enforceability of awards and the responsible use of AI throughout arbitral proceedings.

The don further called for the development of a universally recognised international regulatory framework for AI in arbitration, arguing that existing guidelines developed by individual arbitration institutions do not yet have worldwide applicability.

Such a framework, she said, would promote predictability and uniformity in proceedings involving parties and practitioners from different legal jurisdictions.

For Nigeria, Oluwabiyi said there was an urgent need for complementary legislation specifically addressing AI in legal and arbitral proceedings.

She acknowledged the Nigerian Data Protection Act 2023 and the Nigerian Bar Association’s 2024 guidelines on AI use in legal practice, but noted that the existing framework does not comprehensively regulate AI in arbitration.

She also recommended the establishment of an audit and supervision mechanism to monitor AI-driven processes, particularly to identify algorithmic bias and ensure that technology does not undermine the fairness and integrity of arbitral proceedings.

Oluwabiyi concluded that AI had already become an important tool in international arbitration, capable of delivering greater speed, efficiency and analytical precision.

However, she stressed that lawyers and arbitrators must acquire the necessary legal and technological competencies to operate effectively in the emerging digital environment.