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Dispute Resolution & Litigation, Commercial & Corporate
International arbitration has long been valued for its flexibility, neutrality, and adaptability. In recent years, however, the emergence of artificial intelligence (AI) has introduced a new set of opportunities and challenges that are likely to reshape arbitral practice. Unlike earlier waves of technological change, AI has a particularly pervasive impact: it is capable of touching almost every stage of the arbitral lifecycle; from pre-dispute planning and arbitrator selection to evidentiary and document review, hearings, award drafting, and enforcement. AI in the Context of International Arbitration AI in arbitration may be grouped into several broad categories: • Language and speech technologies: real-time transcription, machine translation, speech analytics, and voice synthesis. • Document and data analysis: technology-assisted review (TAR), document clustering, contract analytics, and predictive search. • Reasoning and drafting support: summarisation, brief drafting, case law synthesis, and award-structuring tools. • Forensics and authenticity: detection of manipulated evidence, such as deepfakes, and analysis of metadata. • Decision support and analytics: outcome prediction, damages modelling, and arbitrator selection analytics. Each class of AI raises distinct questions regarding admissibility, transparency, fairness, and due process, all of which are central to the credibility, integrity and legitimacy of arbitral proceedings. Impact Across the Arbitral Lifecycle Pre-dispute Planning and Arbitrator Selection AI is increasingly shaping arbitration before disputes even arise. Contract drafters now anticipate AI-related risks by including specific provisions in arbitration clauses; for example, restrictions on uploading confidential information to public AI systems, or agreement on translation protocols.In arbitrator selection, AI-driven analytics tools reveal past decision-making patterns, areas of expertise, and potential conflicts. These tools broaden candidate pools and might assist in promoting diversity. However, there is also a danger of over-reliance on statistical patterns, creating feedback loops that favour “safe” or well-documented profiles, while sidelining lesser-known but equally qualified candidates. The key future challenge might be ensuring that arbitrator appointments remain a human decision, informed (but not dictated) by algorithms. Pleadings and Written Submissions AI tools assist counsel in drafting, citation-checking, and issue-spotting, leading to faster production of submissions. However, they also raise the very real risk of ‘hallucinations’, in which non-existent cases or inaccurate authorities are cited. If not carefully verified, such errors may undermine the credibility of submissions and result in disciplinary and costs sanctions.Tribunals may need to implement integrity protocols requiring parties to certify that authorities cited have been human-verified and that any AI-generated drafting has been carefully reviewed. In short, efficiency gains must not come at the expense of accuracy and reliability. Evidence and Document Production One of the most transformative effects of AI is in document review. TAR and clustering tools can reduce costs and streamline discovery, especially in multilingual disputes. But new problems may arise: • Privilege risks: Uploading confidential or privileged documents into public AI systems may inadvertently waive privilege or breach confidentiality obligations. • Authenticity concerns: The rise of deepfakes means tribunals must adopt more robust standards for authenticating video, audio, and photographic evidence. Best practices include adopting AI evidence protocols that require disclosure of the tool used, validation steps, and an auditable chain of custody. Tribunals should also anticipate the need for forensic experts to test the reliability of AI-processed evidence.Although AI can accelerate document production, it can also magnify risks of privilege breaches and fabricated evidence. Hearings AI is already embedded in arbitral hearings through transcription and machine translation. While these tools enhance accessibility, they introduce risks of misinterpretation that may unfairly affect witness credibility. More troubling is the possibility of covert AI assistance during testimony; for example, perhaps even the rather outlandish-sounding risk that a witness might receive real-time AI-generated prompts. Tribunals should consider addressing these risks in their procedural orders by: • approving specific transcription and translation tools, • prohibiting generative assistance during testimony, and • ensuring technological parity so that neither party has an unfair advantage. Going forward, procedural fairness is likely to require careful management of AI use during hearings. Deliberations and Award Drafting AI may certainly help arbitrators structure factual chronologies or verify consistency within an award. However, using AI in deliberations themselves raises two fundamental risks: • Breach of confidentiality: Uploading draft awards to external AI systems may compromise deliberation secrecy. • Improper delegation: If arbitrators rely on ‘opaque’ algorithms to decide on questions of facts or law, the award may be vulnerable to challenge under the New York Convention. The appropriate role for AI should therefore be limited to clerical or stylistic support, with substantive determinations reserved for the tribunal. Arbitrators must ensure that their awards are demonstrably the product of human reasoning. AI should assist, but never replace, the tribunal’s independent judgment. Post-Award Challenges and Enforcement AI use in arbitration could foreseeably feature prominently in set aside and enforcement proceedings. Parties may challenge awards on the grounds that undisclosed reliance on AI deprived them of due process (New York Convention, Article V(1)(b)) or that the award violates public policy (Art. V(2)(b)). Tribunals should mitigate such risks by keeping sealed records of any AI assistance used in drafting, limited to clerical tasks. This approach allows them to rebut speculative challenges without breaching deliberation secrecy. Regulatory and Ethical Considerations AI use runs the risk of introducing several cross-border tensions: • Data protection: Rules such as the EU’s GDPR, China’s PIPL, and Brazil’s LGPD complicate the use of AI platforms that transfer or store personal data abroad. • Confidentiality: Many consumer AI systems retain and train on user data, which conflicts with arbitration confidentiality obligations. • Export controls and sanctions: Some AI technologies are subject to restrictions, which may impact their use depending on the seat of arbitration. • Professional duties: Counsel must exercise competence and candour when using AI. Submitting unverified AI-generated content may breach professional ethics. Regulatory compliance and ethical oversight are essential in order to safeguard the legitimacy of arbitration. Costs, Time, and Environmental Impact AI can reduce costs by streamlining document review and shortening timelines, but it can also generate inefficiencies if inappropriately used. For example, hallucinated citations may necessitate costly corrections. From an environmental perspective, AI may reduce travel by enabling remote hearings, though large scale computation carries its own carbon footprint. It is likely that, in the future, tribunals will increasingly scrutinise whether parties’ AI-related expenditures are proportionate and recoverable as costs of arbitration. AI can undoubtedly make arbitration faster and cheaper if deployed responsibly, but careless use can equally have the opposite effect. Snapshot of Strategic Opportunities and Risks Opportunities: • More accurate multilingual proceedings through AI translation. • Faster and more efficient document review • Enhanced damages modelling and tribunal analytics. • Broader and more diverse arbitrator lists. Risks: • Hallucinated citations and unreliable outputs. • Privilege waivers from inappropriate AI use. • Undisclosed reliance on AI during testimony or deliberations. • Awards undermined by improper delegation to AI systems. Some Recommendations for Good Practice To integrate AI responsibly into international arbitration, tribunals and parties should adopt the following measures: • Include explicit AI provisions in Procedural Order No. 1, covering use, disclosure, authentication, and sanctions. • Require the use of enterprise-grade AI tools that do not train on confidential inputs. • Approve common translation and transcription platforms to ensure parity. • Mandate disclosure of method statements and validation for AI-processed evidence. • Establish forensic protocols for ‘deepfake’ detection. • Ensure that all substantive decisions remain with the tribunal. • Maintain audit trails of AI usage for accountability. • Allocate costs proportionately, rewarding efficient use and penalising misuse. • Safeguard deliberation secrecy by prohibiting external AI in award drafting. • Prepare enforcement-ready records to counter challenges under the New York Convention.
17 Sep 2025
Dispute Resolution & Litigation, Commercial & Corporate, Tax, Immigration
Arbitration is an increasingly preferred alternative to traditional litigation, particularly in commercial and international disputes. For businesses engaged in cross-border transactions, especially within the Asia-Pacific region, choosing between institutional and ad hoc arbitration can significantly influence the efficiency, cost and enforceability of dispute resolution. This article outlines key differences and practical considerations to help parties make informed decisions. Institutional Arbitration Institutional arbitration is conducted under the rules of a recognized arbitral institution, such as the Singapore International Arbitration Centre (SIAC), Hong Kong International Arbitration Centre (HKIAC) or the Australian Centre for International Commercial Arbitration (ACICA). These bodies offer a structured procedural framework and dedicated administrative support. The benefits of institutional arbitration include clearly defined rules that reduce procedural uncertainty, experienced panels of arbitrators and stronger international recognition of awards. Importantly, parties do not need to negotiate fees directly with arbitrators, as institutional rules often prescribe a fee schedule or allow the institution to manage these arrangements. The presence of a secretariat or case management team ensures that timelines are monitored and adhered to, minimizing procedural delays. Institutions also handle logistical and ancillary services such as transcription, interpretation, and hearing room bookings, relieving parties of the administrative burden. While institutional arbitration is often associated with higher administrative costs and reduced procedural flexibility, many institutions now offer streamlined rules and expedited processes to balance efficiency with oversight. Some institutions even extend their facilities, such as venues and financial administration services, to support ad hoc arbitrations, providing a hybrid option that blends autonomy with professional support. Ad hoc Arbitration Ad hoc arbitration does not involve an administering institution. Instead, the parties themselves agree on procedural rules, nominate arbitrators and manage the process independently. This approach offers greater flexibility and can be more cost-effective in the right circumstances. The appeal of ad hoc arbitration lies in its autonomy and adaptability. Parties can customise procedures to suit their commercial needs, potentially achieving faster outcomes with reduced expense. However, without institutional support, parties must arrange all aspects of the process, including arbitrator appointments, fee negotiations and ancillary services. This lack of infrastructure can lead to delays, especially when parties are uncooperative or disputes arise about procedure. Additionally, enforcement of awards may be more difficult if procedural irregularities affect the arbitration’s perceived legitimacy. Strategic Considerations for PartiesFor businesses operating in the Asia-Pacific, selecting the right arbitration model depends on factors such as dispute complexity, anticipated costs, international enforceability and the likelihood of party cooperation. Institutional arbitration is generally better suited to large-scale, cross-border disputes where predictability, enforceability and reputational assurance are important. The procedural structure and secretariat support offered by institutions can be critical in managing complex cases and ensuring compliance with deadlines. In contrast, ad hoc arbitration may be appropriate for smaller claims or domestic matters where parties are aligned on process and cost considerations and may still benefit from certain institutional services when needed. Ultimately, well-drafted arbitration clauses are essential. Legal advice at the contract negotiation stage can ensure that the chosen arbitration method aligns with a company’s broader commercial objectives and mitigates legal risk. As arbitration continues to expand across the region, businesses would do well to engage counsel experienced in both institutional and ad hoc frameworks to guide their approach. ConclusionWhile both institutional and ad hoc arbitration have their respective merits, the growing preference for institutional arbitration, reflected in a 2015 survey where 79 per cent of users opted for institutional mechanisms, underscores its practical advantages in the context of international commercial disputes. Institutions offer procedural certainty, administrative support, and enhanced credibility of awards, which are crucial when dealing with complex, cross-border matters. Additionally, the elimination of direct fee negotiations with arbitrators and the availability of ancillary services contribute to a smoother and more reliable process. Although institutional arbitration can be more costly and less flexible, its structured framework often proves more dependable, particularly where cooperation between parties is limited. Ultimately, the decision between institutional and ad hoc arbitration should be informed by the specific needs of the parties, the complexity of the dispute, and the importance of enforceability and procedural support.
13 Aug 2025
Dispute Resolution & Litigation, Commercial & Corporate, Tax
Making International Arbitration More Cost Effective International arbitration remains a preferred method for resolving cross-border disputes, especially in the Asia-Pacific. However, the process can be costly and protracted, often attracting criticism from commercial parties who seek timely and efficient outcomes. As arbitration continues to evolve in the region, cost effectiveness requires coordinated efforts from parties, arbitrators, institutions and legislators alike. Enhancing Efficiency Through Strategic PlanningMuch of the responsibility for controlling arbitration costs lies with the parties and their legal representatives. Early case assessment and a clear procedural strategy can significantly reduce inefficiencies. By developing a well-defined case theory from the outset, parties can better assess settlement options and avoid unnecessary procedural steps. Importantly, parties should give more thought to dispute resolution clauses before a dispute arises. Too often, these clauses are treated as boilerplate without due consideration of their strategic impact. This is the moment to agree to mechanisms that can streamline future proceedings, such as adopting the IBA Rules on the Taking of Evidence in International Arbitration, which typically provide for more limited disclosure than common law approaches. Likewise, agreeing on the preparation of core document bundles and the use of admissions, even where these may be unfamiliar in civil law jurisdictions, can help narrow the factual issues in dispute and avoid unnecessary fact-finding. Choosing the right arbitrator is equally critical. Opting for a sole arbitrator, particularly one with availability and relevant industry experience, can eliminate the risk of scheduling conflicts and streamline decision-making. This is especially important in the Asia-Pacific region, where access to experienced arbitrators is competitive. Technology also plays a key role in reducing costs. Remote hearings now offer a practical alternative to in-person appearances, eliminating travel expenses and enabling greater flexibility in scheduling. Additionally, focusing on essential evidence and narrowing the scope of issues helps prevent the arbitration process from becoming unnecessarily prolonged. Arbitrators as Drivers of Procedural Efficiency Arbitrators play a pivotal role in setting the tone for an efficient process. Active case management, through clear timelines, procedural orders and firm expectations, helps ensure alignment throughout the arbitration. A key efficiency measure is for arbitrators to clarify the live issues early on, either by preparing their own list for party comment or asking the parties to jointly define them. This can dramatically reduce the time spent arguing peripheral matters. While arbitration is, to some degree, the parties' process, arbitrators should not be overly deferential. Effective case management may require firm intervention. Arbitrators should feel confident using procedural tools such as bifurcation, summary dismissal, or early partial awards, and they should not be deterred by concerns that being prescriptive might affect future appointments or trigger challenges to the award. The tribunal has a responsibility not only to the parties but also to the integrity of the arbitral process. Limiting the volume of submissions and requiring parties to justify the relevance of their evidence are further levers that tribunals can use to ensure the arbitration stays focused and proportionate. Arbitrators should also remain alert to opportunities for early settlement. In jurisdictions such as Singapore and Hong Kong, where mediation is well integrated, they can encourage or facilitate early resort to alternative dispute resolution (ADR) mechanisms. Institutional Support and Legislative Reform Arbitral institutions in the region, including the Singapore International Arbitration Centre (SIAC) and the Hong Kong International Arbitration Centre (HKIAC), have taken steps to improve procedural efficiency. Many now offer expedited procedures that compress timeframes and reduce unnecessary steps, making them ideal for less complex or lower-value disputes. Institutions can go further by actively managing arbitrator availability, enforcing award delivery timelines, and promoting the use of ADR within the arbitration process. In countries such as Australia and New Zealand, where mediation is common, institutions could empower tribunals to stay proceedings to allow for meaningful settlement discussions. Legislation also plays a role. Clear statutory endorsement of summary procedures and expedited mechanisms can remove uncertainties about their enforceability and encourage broader adoption. Recent reforms in arbitration laws across the Asia-Pacific reflect a growing appetite for speed and economy in international arbitration. Practical Steps to Consider To maximise cost efficiency, parties and legal representatives should: • Carefully negotiate dispute resolution clauses during contract formation, considering procedural rules (e.g. IBA Rules) that limit scope and disclosure. • Include pre-arbitration settlement or ADR clauses in contracts. • Agree early on procedural matters such as timelines, core bundles and potential admissions. • Engage experienced arbitration counsel familiar with regional practices. • Limit evidence and witnesses to those strictly necessary. • Consider remote hearings wherever appropriate. Conclusion Cost effective arbitration is not achieved through isolated efforts. Instead, it requires a coordinated approach involving proactive parties, decisive arbitrators, supportive institutions and forward-looking legislation. By embracing efficient case management, agreeing procedural rules and issues upfront, leveraging technology and adopting expedited procedures, international arbitration can continue to serve as a reliable and commercially viable dispute resolution mechanism, particularly for businesses operating across the Asia-Pacific.
15 Jul 2025
Firm News
We welcome Timothy Chan as partner. Timothy is a highly experienced litigation lawyer with a demonstrated history in largescale and complex litigation matters. Prior to joining H & H, he practised for over 15 years at a national law firm, where he was involved in numerous significant landmark disputes. Timothy acts for a broad range of private and corporate clients across many different industries in various jurisdictions representing and advising them on commercial and contract disputes as well as regulatory and competition matters. We are excited to have Timothy on board to continue to grow our dispute resolution and commercial litigation practices. His joining will strengthen our capacity to deliver high quality legal services to all our valued clients.
08 Apr 2024