AAA Introduces the “AI Arbitrator” for Construction Disputes: What You Need to Know
With commentary by Amedeo Calandriello, Attorney at PN Lawyers
The American Arbitration Association (AAA) has launched a new tool—informally referred to as the AI Arbitrator—designed to streamline documents-only arbitration in two-party construction disputes. The initiative blends emerging artificial intelligence capabilities with traditional human oversight, aiming to increase efficiency without removing the judgment of experienced arbitrators.
What Is the AI Arbitrator?
The AI Arbitrator is an AI-supported system that reviews the parties’ written submissions, identifies claim structures, organizes evidence, and produces a draft recommendation for the arbitrator to review. It is currently limited to two-party, documents-only construction cases, where disputes are resolved entirely through written materials rather than witness testimony or live hearings.
This format makes the process well-suited for AI assistance, as the system can parse documents, summarize claims, and detect factual patterns quickly.
How the Process Works
Under the AAA’s framework, the workflow proceeds in three steps:
- Parties Upload Their Materials:
Each side submits its documents, arguments, and evidence into the system. Both parties then verify that the AI has accurately captured and categorized their claims. - AI Generates a Draft Recommendation:
Using legal reasoning models, the AI reviews the submissions, evaluates the issues presented, and drafts a proposed award or recommendation based on the materials. - Human Oversight Remains Central:
A human arbitrator reviews the AI’s draft, refines it where necessary, and issues the final binding award. Human expertise and discretion remain the final authority in the decision-making process.
Potential Benefits
According to the AAA, this hybrid model may offer measurable improvements in both time and cost:
- Faster Resolution: Cases may move 20–25% faster compared to traditional documents-only arbitration.
- Cost Efficiency: Early estimates suggest 35% or more in cost savings for parties.
- Human-Centered Safeguards: A trained arbitrator reviews every AI output, ensuring fairness, transparency, and professional judgment remain core to the process.
Professional Insight: Amedeo Calandriello
Attorney Amedeo Calandriello offers a measured perspective on the introduction of AI into arbitration.
He notes that while technology has an important role to play, its use in complex legal matters must be approached with care:
“While incorporating technology is important, it must be done carefully and slowly. Having an unbiased analysis of the facts could be useful, but there is more to litigation than the raw facts. An AI may not pick up on the nuance in the drafts the same way a person would.”
Amedeo also raises concerns about the sequence in which human arbitrators receive information. If an arbitrator sees an AI-generated summary or recommendation first, it may inadvertently shape their initial impression of the case. His insight underscores the importance of maintaining true independence in decision-making, even with AI tools in the workflow.
What This Means for the Future of Arbitration
The AAA’s AI Arbitrator signals a significant step in the integration of artificial intelligence into dispute resolution. Its limited use case—two-party, documents-only construction matters—keeps the technology within a controlled environment, where written submissions drive the entire outcome.
As AI becomes more prevalent in legal processes, Amedeo’s perspective highlights a key theme: efficiency must not come at the cost of nuance, judgment, or fairness. The legal field continues to navigate how best to incorporate AI while preserving the principles that define the justice system.