Opportunities and challenges of artificial intelligence application in investment arbitration

Artificial intelligence (AI) is increasingly advancing, developing, and finding applications in various aspects of life and work. Some of the most significant social areas, such as law and dispute resolution, have not remained immune to the influence of AI. In this sense, both the positive aspects, useful elements, as well as the potential dangers and risks that this technology brings, are being increasingly considered. Arbitration, as a contractual and voluntary method of dispute resolution, presents fertile ground for the application of various technological solutions to accelerate and ease the process. Investment arbitration, which deals with resolving disputes between a host state and a foreign investor, has its specificities that need to be addressed in the context of AI application. Therefore, this paper provides a review of the benefits of AI in arbitration, analyzes its shortcomings and risks, offers an overview of certain smart tools available, and presents a general view on the ethical and legal regulation of AI application in arbitration. The conclusion of the paper is that the possibilites for further development and refinement of AI technology for use in arbitration are numerous, but should be approached cautiously. It will be necessary to devise an optimal, flexible regulation to standardize the rudimentary rules of AI application in order to meet the basic requirement: benefit for humanity and society, while respecting the specific values and principles on which investment arbitration is based.