Artificial Intelligence and Foreign Investment Law Arbitration: an Analysis of Regulatory Framework Implications

Abstract

Abstract This paper proposes a structured, tiered framework through a UNCITRAL Model Law to gradually integrate artificial intelligence (AI) into foreign investment law arbitration in an ethical and effective manner. It also explores the critical role arbitration institutions can play in facilitating AI implementation. It details how AI can assist arbitrators by searching vast datasets, automating routine tasks, and enhancing decision-making through analysis of previous cases. Current AI regulations in regions like the EU, UK, and Canada fall short in addressing the complexities of cross-border arbitration and ensuring interoperability. By emphasising the distinct contributions of the proposed UNCITRAL Model Law and arbitration institutions, the paper highlights a multi-faceted strategy to overcome challenges posed by outdated international conventions, inconsistencies in bilateral investment treaties, and the lack of comprehensive guidance. This approach aims to refine the integration of AI in arbitration processes, enhancing efficiency, fairness, and the legitimacy of the arbitration system.