Resources

Client Alerts, News Articles, Blog Posts, & Multimedia

Everything you need to know about BMD and the industry.

AAA Introduces AI-Assisted Arbitrator for Certain Disputes

Client Alert
April 7, 2026

The American Arbitration Association (“AAA”) recently introduced an AI-assisted arbitration platform known as the “AI Arbitrator.” The technology is designed to help streamline arbitration, particularly in two-party, documents-only construction disputes, by using artificial intelligence to analyze filings, summarize evidence, and generate draft decisions for a human arbitrator to review.

Under the AAA’s framework, AI does not replace the arbitrator; rather, it assists with reviewing submissions, identifying claims and issues, summarizing evidence, and preparing a proposed award. A human AAA arbitrator reviews, revises if necessary, and ultimately issues the final binding decision.

The platform reflects a broader effort within the ADR community to reduce costs and improve efficiency in high-volume disputes. Early AAA estimates suggest AI-assisted arbitration may resolve cases 20-25% faster and reduce costs by roughly 35% or more in certain document-based cases.

Potential Advantages

Organizations considering arbitration clauses that incorporate AI-assisted processes should evaluate several potential benefits:

  • Cost savings and efficiency: Automated analysis of pleadings and exhibits may significantly reduce the time required for case review and award drafting.
  • Faster dispute resolution: Streamlined workflows can shorten the time from filing to award in straightforward cases.
  • Improved analytical consistency: AI tools can systematically organize claims, evidence, and legal authorities, potentially improving clarity for arbitrators and parties.
  • Strategic insights before filing: AAA has also developed tools such as a “Resolution Simulator,” which can model how an arbitrator might analyze a dispute to help parties assess risk before initiating arbitration.

Potential Risks & Considerations

Despite these advantages, companies should carefully consider potential limitations before agreeing to AI-assisted arbitration:

  • Transparency concerns: Parties may not have full visibility into how AI analyzes issues or drafts its recommendations.
  • Reliance on emerging technology: AI systems may carry risks of bias, errors, or incomplete analysis if not carefully supervised.
  • Limited applicability: The current platform is designed primarily for documents-only disputes, meaning more complex matters involving live witness testimony may not be appropriate.
  • Contractual implications: Because the process is opt-in, arbitration clauses must specifically allow for AI-assisted arbitration if parties wish to use it.

Takeaway

AI-assisted arbitration represents a notable development in alternative dispute resolution. While it may offer meaningful efficiency and cost benefits – particularly for straightforward, document-based commercial disputes – companies should carefully consider whether the process aligns with their dispute resolution strategy, risk tolerance, and existing contractual provisions before electing to use it.

If you have questions about incorporating AI-assisted arbitration into dispute resolution clauses or evaluating its use in a pending dispute, please contact BMD Partner Krista Osterfeld at kwosterfeld@bmdllc.com.

AIArtificial IntelligenceArbitrationKrista Osterfeld
Client Alert

RNs and APRNs Take Note: Ohio Board of Nursing Mandates a New CE Reporting Period

April 29, 2026Ohio’s Board of Nursing has updated the continuing education reporting period for RNs and APRNs. Beginning March 26, 2026, CE credits must be completed between July 1 and June 30 of odd-numbered years, replacing the previous November to October timeframe.Client Alert

Ohio Med Spas: Peptide Do's and Do Not's

April 29, 2026Recent guidance from the Ohio Board of Pharmacy outlines key compliance requirements for med spas using peptides. While some peptide drugs are FDA approved, others are not or cannot be compounded. Med spa operators should ensure they source medications from licensed suppliers, avoid non-approved or “research use only” products, and follow all compounding and storage regulations to maintain compliance and avoid enforcement actions.Client Alert

Substance Use Disorder Providers: 42 CFR Part 2 Now Enforceable

April 15, 2026Updates to 42 CFR Part 2 are now enforceable, bringing significant changes to how substance use disorder (SUD) records are handled. The Final Rule aligns Part 2 more closely with HIPAA, introduces updated penalties, allows a single patient consent for treatment, payment, and operations, and adds new requirements for Notices of Privacy Practices. It also creates a formal definition of SUD counseling notes and imposes strict consent requirements for their use and disclosure. Providers should review and update policies to ensure compliance.Client Alert

Quiet Hours Texts and TCPA Claims: Consent Remains King as Courts Divide on Text Messages

March 31, 2026Businesses face increasing TCPA lawsuits over off-hours marketing texts, but recent court decisions highlight strong defenses. Clear consumer consent and updated terms and conditions can defeat many claims, while a growing number of courts are finding that text messages are not “telephone calls” under the statute. Proactive compliance measures, including clickwrap agreements and forum-selection clauses, are critical to reducing risk.Client Alert

New Ohio Reporting Requirements for Non-Residential Contractors

March 18, 2026Ohio’s E-Verify Workforce Integrity Act, effective March 19, 2026, requires all nonresidential construction companies, subcontractors, and labor brokers to use E-Verify to confirm employee work eligibility on projects across the state. The law applies regardless of company size and carries financial penalties and potential restrictions on future state contracts for noncompliance. Some uncertainty remains around requirements for existing employees, making early compliance planning important.
Older posts