Embracing AI in Arbitration: Chinese Prospect – Navigating Challenges and Forging Pathways

Abstract Artificial Intelligence (AI) offers considerable potential to enhance arbitration efficiency, reduce costs, and improve service quality. However, its integration also introduces complex challenges at the intersection of law and technology. Against the backdrop of China’s ongoing third revision of the Arbitration Law and the expansion of its digital economy, this study examines the legal and institutional challenges posed by AI applications in arbitration proceedings. It proposes a multi-level safeguarding framework to promote secure, innovative, and well-regulated AI adoption in arbitration. By addressing issues such as legislative gaps and tensions between confidentiality and data-driven processes, the research suggests categorizing AI applications based on specific use cases, and establishing a regulatory structure spanning legal, institutional, and industry-association dimensions. This framework aims to ensure data security and personal privacy while facilitating data sharing and algorithmic optimization, thereby enhancing arbitration services and contributing a Chinese model to the development of international commercial arbitration.