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Introduction
In addition to new legal issues that will emerge, AI will impact litigation and arbitration management and procedure. We can therefore expect a revolution led by the use of AI systems on procedural efficiency. It is also important for companies to be well prepared for the possibility of litigation, and to adopt good practices in anticipation.
Legal issues of AI in the entertainment and media sector part 2
AI and efficient procedure
Intelligent software is already capable of expediting contract analysis, enabling counsel to focus on pertinent disputed issues. AI applications are transforming legal research and enabling the automation of drafting legal documents, such as pleadings and discovery/disclosure requests. Similarly, AI-powered legal analytics offer case outcome predictions, as well as insights and patterns of judgments or arbitration awards, benefiting strategic case assessment and allowing parties to consider the results in settlement discussions. In the future, decentralized dispute resolution platforms may even harness AI to select jurors or arbitrators, relying on algorithms with the aim of impartiality and fairness.
Importantly, AI presents an array of applications that will facilitate the enforcement of judgments and arbitral awards. Smart contracts can be programmed to automate certain enforcement aspects, eliminating the necessity for human intervention. AI can aid in extracting relevant information from judgments or awards, such as involved parties, awarded sums and governing laws, thus streamlining the enforcement preparation. AI can also automate procedural enforcement steps, drafting requests, handling deadlines and submitting necessary documents. Predictive analytics, utilizing historical enforcement data, can estimate the likelihood of enforcement, assisting in strategy and resource allocation. Additionally, AI has the potential of simplifying asset tracking. In cross-border enforcement, AI’s capacity to dissect relevant laws, treaties and enforcement mechanisms across various jurisdictions can alleviate complexities, informing parties of their options and aiding strategy formulation.
AI therefore holds immense potential to revolutionize dispute resolution by significantly reducing both costs and time. The automation capabilities of AI allow for more efficient processes, minimizing laborious manual tasks and decreasing the need for human intervention, thus allowing counsel to focus on strategy and other impactful matters.
Outlook: Navigating contentious AI issues
The growing use of AI will lead to an increase in legal disputes related to its development and deployment, and indeed, lawyers are already grappling with AI issues on an increasingly regular basis. While it may not be possible to avoid disputes, it is important for companies to be adequately prepared in case they do occur. Steps companies can take when using AI include:
- Ensuring that the AI system is designed and developed with a focus on ethical considerations and in compliance with relevant laws and regulations.
- Conducting thorough risk assessments to identify potential risks associated with the AI system and taking appropriate measures to mitigate these risks.
- Keeping accurate records of the development, deployment and operation of the AI system, including the data used, the algorithms applied, and any decisions made by the system.
- Implementing appropriate contractual protections, including disclosure requirements and indemnification clauses in contracts with vendors, suppliers and other third parties involved in the development and deployment of the AI system.
- Considering obtaining insurance coverage for liability related to the use of AI.
- Implementing appropriate policies and procedures for the use and oversight of AI systems, including monitoring and auditing performance and ensuring that AI is used only for stipulated purposes.
- Staying up to date on legal and regulatory developments relating to AI and adjusting policies and procedures as necessary to remain compliant – the legal landscape regarding AI is constantly evolving, with ongoing efforts at both the EU and national levels to establish new laws and regulations.
- Remembering that the laws and regulations governing AI-related liability may vary by jurisdiction.