Rijiju, SC Judge Kaul point to significance of artificial intelligence in arbitration

Union law minister Kiren Rijiju and Supreme Court judge, Justice Sanjay Kishan Kaul, underscored the significance of artificial intelligence (AI) in the field of arbitration.

Rijiju said that AI could be used to assist arbitrators in drafting awards and identifying trends. The government was capable of enhancing digital capability and developing a strong arbitration ecosystem, he said, adding: “The aim is to encourage arbitration for smaller, contractual disputes, especially where parties are small or medium-scale business owners.”

Justice Kaul said that to explore the possibility of using AI, the Supreme court has formed an AI committee to look into the possibility of using it. “For arbitration, AI can be used for selective expert arbitrators. However, AI tools must be used carefully because they come with risks of due process rights and public policy violation,” he cautioned.

The duo was speaking at the concluding session of the Delhi Arbitration week organised by the Delhi International Arbitration Centre.

Speaking on the upcoming Mediation Bill, Rijiju said that the valuable suggestions given by a committee to improve the bill have been considered. He added that when the “draft bill comes out, it will be wonderful”.

Underlining the importance of arbitration in India, Rijiju said a strong robust arbitration must have the backing of the executive and the judiciary. “Currently, the majority of arbitrations in India are ad hoc. If India has to become a global hub of arbitration, we have to follow international practice since ad hoc arbitration becomes susceptible to judicial intervention,” he added.

Rijiju added all arbitration centres were complementary to each other and healthy competition was needed to scale up India on the global map and there was no place for conflict between the centres.

Justice Kaul said that institutional arbitration had seen a positive landscape in India. “The Mediation Bill which will see the light of the day this year is also geared towards institutionalising this system. The Supreme Court has been very slow in interfering with the awards passed by the arbitrators. Parties must learn to accept the awards and unfortunately the public sector more so requires this and there is no need to carry the battle forward,” he added.