Arbitration in the age of artificial intelligence and digital transformation was discussed in Cyprus

The third annual international conference Cyprus Arbitration Day (CAD-2025) was devoted to discussing the vectors of arbitration development. The event was attended by Viktoria Polishchuk, member of the Committee on Alternative Dispute Resolution of the Ukrainian National Bar Association and UNBA representative in the Republic of Cyprus.

The third annual international conference Cyprus Arbitration Day (CAD-2025) was devoted to discussing the vectors of arbitration development. The event was attended by Viktoria Polishchuk, member of the Committee on Alternative Dispute Resolution of the Ukrainian National Bar Association and UNBA representative in the Republic of Cyprus.

The event was attended by leading arbitration practitioners from Europe, the Middle East, and Asia, representatives of international law firms, arbitration institutions, academia, and technology companies.

An important part of the discussion was a presentation on the role of AI in arbitration proceedings, from predicting case outcomes to automated case management and decision generation. Among the risks that require careful monitoring, speakers cited algorithmic bias, threats to confidentiality, and loss of transparency. However, experts generally agreed that AI will not replace arbitrators, but will enhance their analytical capabilities.

Emphasis was also placed on a category of disputes that have already become the new norm — conflicts over copyright infringements resulting from training AI models on third-party content. The following cases were discussed: New York Times v. OpenAI, Getty Images v. Stability AI, and Studio Ghibli v. AI services. Arbitration is proving to be a convenient format for resolving such disputes, thanks to the possibility of appointing experts with a technological background and applying special procedural rules.

«This area has enormous potential for Ukraine. We have a powerful IT industry that is already facing similar challenges, - notes V. Polishchuk. - Therefore, participation in such discussions is not only about knowledge, but also about shaping the rules of the game that will soon become global».

Another hot topic was the parallelism of commercial and investment arbitration, when the same case is considered both as a breach of contract and as a violation of an international investment treaty. The main question that the experts tried to answer was whether modern arbitration has lost its way in complexity. The risk of bureaucratization of the process reduces its effectiveness. Therefore, modern arbitration, as well as alternative dispute resolution methods in general, face new challenges, ranging from artificial intelligence to cybersecurity, from digital evidence to the intersection of legal systems.