A new AI-assisted dispute resolution process from the American Arbitration Association (AAA) may offer contractors and project owners a faster way to address routine construction disputes before they escalate. Designed for certain document-based construction cases, the process uses artificial intelligence to help organize evidence, summarize submissions, identify key issues, and prepare a proposed decision. A human AAA arbitrator reviews, revises, and issues the final decision, ensuring that AI supports the process rather than replacing the decision-maker.

The approach could be particularly useful when handling payment disputes, change orders, or scope disagreements that require a timely interim decision to keep projects moving. Rather than replacing mediation, arbitration, or litigation, the AI-assisted process is intended to provide an initial decision while preserving each party's right to pursue formal dispute resolution if necessary.

For contractors, this emerging technology highlights how AI is beginning to play a role beyond the jobsite, offering new tools that may improve efficiency in contract administration and dispute resolution. As with any contractual provision, businesses should consult with legal counsel to determine whether an AI-assisted Initial Decision Maker is appropriate for their projects.

Article by Trent Cotney. Click here to read more.