AI Arbitrators: Bridging Human and Machine Judgment in Construction Law

By Mari Maloul

In an industry guided by complex contracts, intense regulations, and narrow margins, disputes within construction are bound to occur.[1] Internationally, arbitration has long established itself as a go-to method for resolving these disputes.[2] On November 3, 2025, the American Arbitration Association’s International Centre for Dispute Resolution (“AAA-ICDR”) launched an AI-powered arbitrator tool which will revolutionize the future of construction arbitration.[3] This machine learning system was created to recreate the human-like decision making process, yet still emphasizes the importance of human input as human arbitrators remain on board for reviewing final drafts.[4] The AI arbitrator assesses claims “emulate[ing] human judgment,” provide recommendations, and draft awards to be reviewed by human arbitrators, ensuring transparency and proper verification.[5]

The AI arbitrator will initially be utilized for construction disputes that are documents-only, adding a new level of efficiency and timeliness to the construction arbitration process. The AAA-ICDR predicts a 30 to 50% decrease in costs and a 25 to 30% decrease in time spent on construction arbitration due to the efficiency associated with the AI arbitrator.[6] Construction disputes that heavily rely upon “documentary records, schedules, quantification, and contractual mechanics” are best suited for the AI arbitrator, while “novel points of law” are less well suited.[7] The AI arbitrator was trained using datasets that teach the machine system the thought process of human arbitrators when analyzing documents and determining conclusions.[8] Promoting accessibility to conflict resolution is a major benefit of the AI arbitrator. Smaller businesses who normally could not afford traditional arbitration, can now utilize the AI arbitrator to solve construction conflicts.[9] The AAA’s CEO, Bridget McCormack, stated that by cutting down the cost and time of construction arbitration, now “we can resolve 10x [more disputes].”[10]

While the implementation of AI into construction arbitration sparks promising results, there are inherent risks that arise with the use of AI such as confidentiality, data privacy, and the practicality of the enforcement of an AI judgment.[11] Human judgment and reasoning is core to enforcing judgments and the AAA-ICDR must ensure that the AI arbitrator has the ability to provide transparent reasoning and human-like judgment.[12] The legal enforcement of AI-arbitrator decisions poses a challenge as some international laws require human arbitrators, and parties have already attempted to vacate awards due to arbitrators use of AI.[13] However, the human review process of the tool may help navigate obstacles with enforcement. After the AI arbitrator drafts a decision, a human arbitrator will review the outcome and has the authority to revise AI decisions prior to finalization.[14] While AI is generating the award, the human arbitrator is still signing the award and substantiating the outcome.[15] This component preserves the thoughtfulness and integrity of human judgment and provides a balance between machine decision making and human oversight.

The success of the AI arbitrator relies on preserving transparency, confidentiality, and ensuring due process.[16] As the construction law field adjusts to this new conflict resolution development, it will be interesting to see whether the cost, time, and accessibility benefits truly assist parties in arbitration proceedings, or if this innovation will pose more of a challenge regarding regulatory enforcement and complications with AI decision making.[17]

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[1] Aine McGuinness, AI in Construction Arbitrations: A Game Changer?, DWF (Oct. 10, 2025), https://dwfgroup.com/en/news-and-insights/insights/2025/10/ai-in-construction-arbitrations-a-game-changer [https://perma.cc/G7YR-VA7S].

[2] Id.

[3] See AAA-ICDR® AI Arbitrator Now Available for Documents-Only Construction Cases, Am. Arbitration Ass’n (Nov. 3, 2025), https://www.adr.org/press-releases/aaa-icdr-ai-arbitrator-now-available/ [https://perma.cc/M36Z-Q4PV].

[4] AI Construction Arbitrator: Revolutionizing the Future of International Arbitration?, Aceris Law 2025 (Nov. 10, 2025), https://www.acerislaw.com/ai-construction-arbitrator-revolutionising-the-future-of-international-arbitration/ [https://perma.cc/2DZE-6UD7].

[5] AAA-ICDR® to Launch AI-Native Arbitrator, Transforming Dispute Resolution, Am. Arbitration Ass’n (Sep. 17, 2025), https://www.adr.org/press-releases/aaa-icdr-to-launch-ai-native-arbitrator-transforming-dispute-resolution/ [https://perma.cc/BL86-Z9VL].

[6] AI as Arbitrator for Certain Low-Value Construction Disputes at AAA-ICDR, A&O Shearman (Oct. 3, 2025), https://www.aoshearman.com/en/insights/ao-shearman-on-arbitration/ai-as-arbitrator-for-certain-low-value-construction-disputes-at-aaa-icdr [https://perma.cc/TK3Y-4HM6].

[7] Id.

[8] See Bob Ambrogi, AAA Readies November Launch of AI-Powered Arbitrator for Construction Disputes, LawSites, (Sep. 22, 2025), https://www.lawnext.com/2025/09/aaa-readies-november-launch-of-ai-powered-arbitrator-for-construction-disputes.html [https://perma.cc/V5YN-ETB5].

[9] See id.

[10] Id.

[11] See AI as Arbitrator for Certain Low-Value Construction Disputes at AAA-ICDR, supra note 6.

[12] See id.

[13] See id.

[14] Ambrogi, supra note 8.

[15] Id.

[16] AI as Arbitrator for Certain Low-Value Construction Disputes at AAA-ICDR, supra note 6.

[17] Id.