The SCC Arbitration Institute leads the way in embracing the age of AI

Background 

The SCC Arbitration Institute (“SCC”) provides parties with a neutral forum and an impartial process for the reliable, efficient, and expeditious resolution of disputes worldwide. It considers itself to be a thought leader, particularly in the Nordic region, and at the forefront of innovation in the field. 

Artificial intelligence (“AI”) is a rapidly evolving and transformative field with significant potential benefits in terms of efficiency and expeditiousness. Its use, both in and outside of arbitration, is increasing exponentially with broad commercial, geopolitical and security repercussions, among others.  

– AI is the future! Already now its use represents significant potential benefits for arbitration users in terms of time and cost efficiency. We expect to see an exponential increase in the use of AI, says Jake Lowther, Specialist Counsel. 

Managing AI’s potential 

Given the potential benefits arising from the use of AI, as well as the societal importance of binding dispute resolution, the SCC is releasing this non-binding guide to the use of AI in cases administered under the SCC Rules (“Guide”). The Guide follows the SCC’s light touch approach to maintain flexibility and adaptability in respect to the use of AI in SCC cases, while also contributing to the development of global best practices. 

The SCC encourages Arbitral Tribunals and as appropriate other participants in arbitration to bear in mind inter alia the following. 

• Confidentiality: As the use of some AI tools may have unintended consequences for the confidentiality of an arbitration, participants, in particular the Arbitral Tribunal, are therefore encouraged to inform themselves as to how any data input is employed and deployed when using AI.  
• Quality: Arbitral Tribunals should ensure any use of AI does not lead to any reduction in the quality of their decisions. To ensure effective human oversight, Arbitral Tribunals should apply an appropriate level of review and verification to any outputs of AI systems before making use of such outputs in an arbitration. 
• Integrity: As transparency and accountability are key components of integrity, Arbitral Tribunals are encouraged to disclose any use of AI in researching and interpreting facts and the law or applying the law to facts to ensure the parties’ rights to be heard, and that the Arbitral Tribunal does not exceed its mandate. 
• Non-delegation of the decision-making mandate: AI tools may be used to support arbitral decision-making but cannot replace it. Arbitral Tribunals cannot delegate the decision or the reasoning leading to it to anyone or anything. 

– We at the SCC are thrilled to be able to release this new SCC Guide to the use of artificial intelligence in cases administered under the SCC rules to promote best practices in the use of AI in arbitration! says Caroline Falconer, SCC Secretary General. 

The Guide to the use of AI in cases administered under the SCC Rules is available here.