{"id":287482,"date":"2025-09-22T16:00:00","date_gmt":"2025-09-22T14:00:00","guid":{"rendered":"https:\/\/dailyjus.com\/?p=287482"},"modified":"2025-11-06T09:46:46","modified_gmt":"2025-11-06T08:46:46","slug":"viac-president-urges-arbitral-institutions-to-lead-on-ai-integration","status":"publish","type":"post","link":"https:\/\/dailyjus.com\/index.php\/2025\/09\/22\/viac-president-urges-arbitral-institutions-to-lead-on-ai-integration\/","title":{"rendered":"VIAC President Urges Arbitral Institutions to Lead on AI Integration"},"content":{"rendered":"\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>THE AUTHOR<\/strong>:<br>Dr. <a href=\"https:\/\/jusconnect.com\/en\/p\/nikolaus-pitkowitz\" target=\"_blank\" rel=\"noopener\" title=\"\"><strong>Nikolaus Pitkowitz<\/strong><\/a>, Founding Partner and Head of Dispute Resolution at <a href=\"https:\/\/jusconnect.com\/en\/d\/profile\/firm\/pitkowitz-partners\" target=\"_blank\" rel=\"noopener\" title=\"\"><strong>Pitkowitz &amp; Partners<\/strong><\/a><strong> <\/strong>&amp; President of the <a href=\"https:\/\/jusconnect.com\/en\/d\/profile\/institution\/en-viac-vienna-international-arbitral-centre\" target=\"_blank\" rel=\"noopener\" title=\"\"><strong>Vienna International Arbitral Centre<\/strong><\/a><strong> <\/strong>(<strong>VIAC<\/strong>)<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Beijing, 17 September 2025<\/strong> \u2013 At the China Arbitration Summit, Dr. Nikolaus Pitkowitz, President of the <a href=\"https:\/\/jusconnect.com\/en\/d\/profile\/institution\/en-viac-vienna-international-arbitral-centre\" target=\"_blank\" rel=\"noopener\" title=\"\"><strong>Vienna International Arbitral Centre<\/strong><\/a><strong> <\/strong>(<strong>VIAC<\/strong>) and founding partner of <a href=\"https:\/\/jusconnect.com\/en\/d\/profile\/firm\/pitkowitz-partners\" target=\"_blank\" rel=\"noopener\" title=\"\"><strong>Pitkowitz &amp; Partners<\/strong><\/a>, called on arbitration institutions worldwide to take the lead in addressing the use of Artificial Intelligence (\u201c<strong>AI\u201d<\/strong>) in arbitration. In a speech to an audience of arbitration professionals, Pitkowitz emphasized that AI in arbitration is <em>\u201cno longer theoretical but already shaping our practice,\u201d<\/em> and urged institutions to proactively set standards to ensure that this technology strengthens rather than undermines arbitral proceedings.<\/p>\n\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Institutions Over Legislators: Filling the AI Guidance Gap<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Pitkowitz noted that international arbitration, being a private and consensual form of dispute resolution, is well-positioned for self-regulation on emerging issues like AI. He argued that arbitral institutions \u2013 not state legislators \u2013 should spearhead the development of AI guidelines to find the sweet spot between lawless uncharted territory and paralysis by overregulation. <strong>\u201cWe don\u2019t want a regulatory vacuum, but we also don\u2019t want heavy-handed state intervention,\u201d<\/strong> he stated, suggesting that institutions can fill the gap through soft-law instruments such as notes, guidelines, and rules tailored to arbitration\u2019s needs. By taking initiative, institutions can create balanced frameworks that keep pace with technology while preserving the fairness and integrity of the arbitral process.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As a forward-looking idea, Pitkowitz even floated the possibility of arbitral institutions offering AI tools directly to parties and tribunals as part of their services. If both sides and the tribunal have equal access to the same AI-driven resources (for tasks like organizing evidence or managing case data), it could <strong>\u201clevel the playing field\u201d<\/strong> and preempt concerns about unequal access or secret use of AI. In this way, institutions would not only set rules but also <em>embed<\/em> transparency and fairness into the very tools used in proceedings.<\/p>\n\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>VIAC and CIETAC Pioneering AI Guidelines<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">As examples of institutional leadership, Pitkowitz highlighted recent advancements by VIAC and the <a href=\"https:\/\/jusconnect.com\/en\/d\/profile\/institution\/en-cietac-china-international-economic-and-trade-arbitration-commission\" target=\"_blank\" rel=\"noopener\" title=\"\">CIETAC<\/a> (China International Economic and Trade Arbitration Commission) in integrating AI guidance:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/jusmundi.com\/en\/document\/rule\/en-viac-vienna-international-arbitral-centre-note-on-the-use-of-artificial-intelligence-in-arbitration-proceedings-2025-viac-note-on-the-use-of-ai-in-arbitration-proceedings-2025-tuesday-1st-april-2025\" target=\"_blank\" rel=\"noopener\" title=\"\"><strong>VIAC\u2019s Note on AI in Arbitration (2025)<\/strong><\/a><strong>:<\/strong> Released at the beginning of this year as part of VIAC\u2019s 50th anniversary initiatives, this non-binding guidance was developed by VIAC\u2019s Legal Tech Think Tank. <em>\u201cThe VIAC Note on AI aims to ensure that AI strengthens rather than impairs arbitration,\u201d<\/em> Pitkowitz explained, underscoring that arbitrators must use AI responsibly and ethically. The VIAC Note encourages tribunals and parties to discuss any intended use of AI at an early case management stage, and it empowers arbitrators to require disclosure of AI involvement where appropriate. Notably, it even addresses a hotly debated topic \u2013 the use of AI in generating evidence \u2013 by affirming that arbitrators have discretion to ask for disclosure of AI-produced evidence and to determine its admissibility.<\/li>\n\n\n\n<li><a href=\"https:\/\/www.cietac.org\/articles\/33752\" target=\"_blank\" rel=\"noopener\" title=\"\"><strong>CIETAC\u2019s AI Guidelines (2025)<\/strong><\/a><strong>:<\/strong> In July, CIETAC became the first major arbitral institution in the Asia-Pacific region to issue AI guidelines. These provisional guidelines provide high-level advice for parties, counsel, and tribunals on using AI in arbitration, aligning with China\u2019s drive to lead in AI by 2030. CIETAC\u2019s rules echo a principle also central to VIAC\u2019s Note: <strong>AI can support procedural efficiency, but must not replace human decision-making<\/strong>. The guidelines emphasize that arbitrators retain full authority for decisions and must ensure parties\u2019 <strong>right to be heard<\/strong> never being compromised by AI use. CIETAC also addresses practical safeguards \u2013 for example, it cautions that using AI does not excuse parties from <strong>guaranteeing the authenticity and legality of evidence<\/strong> they submit. This proactive stance has made CIETAC a forerunner in the region in advancing AI use in arbitration.<\/li>\n<\/ul>\n\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Core Principles for AI Use in Arbitration<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Dr. Pitkowitz distilled the approach of these initiatives into three core principles \u2013 essentially the <strong>\u201cfeatures\u201d<\/strong> that any use of AI in arbitration should uphold:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Authority: Human arbitrators must remain the ultimate decision-makers.<\/strong> AI tools may assist with analysis or efficiency, but under no circumstances should an arbitrator delegate or surrender their judgment to an algorithm. Both VIAC and CIETAC stress that the tribunal bears full responsibility for the award\u2019s reasoning and outcome.<\/li>\n\n\n\n<li><strong>Transparency: Disclose AI usage to all stakeholders.<\/strong> To preserve trust and due process, arbitrators (and even counsel or experts) should inform parties if AI tools are used and clarify for what purpose. Using AI to draft a simple scheduling order is very different from using it to evaluate evidence or draft substantive portions of an award. Pitkowitz noted that greater disclosure allows parties to understand and, if needed, challenge how AI has influenced a proceeding. VIAC\u2019s guidance stops short of mandating disclosure in every instance, but it recommends that tribunals and parties discuss and agree on the use of AI at the outset of a case \u2013 including whether and how to disclose its use.<\/li>\n\n\n\n<li><strong>Integrity and Fairness: AI should enhance efficiency without undermining due process.<\/strong> Any AI application must respect the fundamental procedural rights of the parties. For instance, if an AI tool summarizes evidence or suggests a legal analysis, the parties must still have the opportunity to respond to that output. Both institutions\u2019 guidelines underline that arbitration\u2019s fairness \u2013 equality of arms, the right to be heard, reasoned decision-making \u2013 cannot be compromised by opaque or untested AI outputs. Pitkowitz warned that so-called \u201cblack box\u201d AI systems (whose internal logic is not transparent) pose a risk to the integrity of awards if their reasoning cannot be explained or verified. Ensuring <strong>explainability<\/strong> of any AI influence is thus crucial to maintaining confidence in the outcome.<\/li>\n<\/ul>\n\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Safeguarding Due Process in an AI-Augmented Arbitration<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">One of the central themes of Pitkowitz\u2019s address was the <em>\u201cdue process dilemma\u201d<\/em> posed by AI. He observed that the legitimacy of any arbitral award hinges on the parties\u2019 ability to understand and trust the decision-making process. Introducing AI into that process raises challenging questions:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Disclosure and the Right to Be Heard:<\/strong> If an arbitrator uses an AI tool in the process of evaluating evidence or crafting a decision, how do parties know to what extent AI provided decisive input? <em>\u201cIf a party doesn\u2019t know AI was involved, they can\u2019t meaningfully engage with the resulting output,\u201d<\/em> Pitkowitz noted. Transparency is not just an ethical nicety but an integral component of due process \u2013 parties must be aware of all factors influencing the tribunal&#8217;s reasoning so they can exercise their right to be heard in response. This commands that at least some level of AI disclosure is necessary whenever AI meaningfully impacts the tribunal\u2019s views.<\/li>\n\n\n\n<li><strong>The \u201cBlack Box\u201d Challenge:<\/strong> Advanced AI systems (especially generative AI based on large language models) often operate opaquely, without providing human-readable reasons for their conclusions. Pitkowitz questioned how this caters to one of the core principles of arbitration, by which arbitrators are expected to issue reasoned awards. <em>\u201cIs it enough to say \u2018the AI said so\u2019? Of course not,\u201d<\/em> he quipped. If an arbitrator were to rely on an AI\u2019s suggestion, there must be a way to <strong>explain and justify<\/strong> that decision in the award. Otherwise, an award that quietly relies on AI\u2019s unseen logic could be attacked for lacking transparency and reasoning. In fact, he pointed out that <a href=\"https:\/\/conflictoflaws.net\/2025\/ai-in-arbitration-will-the-eu-ai-act-stand-in-the-way-of-enforcement\/#:~:text=This%20scenario%20presents%20a%20direct,b%29%20of%20the%20Convention%2C%20the\" target=\"_blank\" rel=\"noopener\" title=\"\"><strong>European courts might even refuse to enforce<\/strong><\/a> an award tainted by such opacity: under the <a href=\"https:\/\/jusmundi.com\/en\/document\/treaty\/en-united-nations-convention-on-the-recognition-and-enforcement-of-foreign-arbitral-awards-new-york-convention-1958-tuesday-10th-june-1958\" target=\"_blank\" rel=\"noopener\" title=\"\">New York Convention (1958)<\/a>, an award can be denied recognition on public policy grounds if fundamental procedural fairness (like the <a href=\"https:\/\/conflictoflaws.net\/2025\/ai-in-arbitration-will-the-eu-ai-act-stand-in-the-way-of-enforcement\/#:~:text=First%2C%20under%20Article%201721,right%20to%20explanation%20for%20affected\" target=\"_blank\" rel=\"noopener\" title=\"\">requirement of a reasoned decision<\/a>) is breached.<\/li>\n\n\n\n<li><strong>Ensuring Equality of Arms:<\/strong> Pitkowitz also raised concern about resource asymmetry. If one party has access to cutting-edge AI tools and the other does not, it could <em>\u201cdistort procedural fairness\u201d<\/em>. He suggested that clear rules \u2013 or institutional provisioning of AI tools to all sides \u2013 are needed to prevent AI from becoming an invisible source of unfair advantage in proceedings.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">To address these issues, Pitkowitz advocated developing standards for <strong>minimum disclosure<\/strong> of AI use, avenues for parties to <strong>test and challenge AI-generated inputs<\/strong>, expectations for <strong>explainability<\/strong> in any AI-derived analysis, and measures to prevent <strong>inequality of arms<\/strong>. Without such guardrails, he warned, <em>\u201cwe risk undermining the very fairness that gives arbitration its legitimacy.\u201d<\/em><\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large is-resized\"><img decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/dailyjus.com\/wp-content\/uploads\/2025\/09\/142A8776-1024x683.jpg\" alt=\"\" class=\"wp-image-287484\" style=\"width:740px;height:auto\" srcset=\"https:\/\/daily.jusconnect.com\/~www\/wp-content\/uploads\/2025\/09\/142A8776-1024x683.jpg 1024w, https:\/\/daily.jusconnect.com\/~www\/wp-content\/uploads\/2025\/09\/142A8776-300x200.jpg 300w, https:\/\/daily.jusconnect.com\/~www\/wp-content\/uploads\/2025\/09\/142A8776-768x512.jpg 768w, https:\/\/daily.jusconnect.com\/~www\/wp-content\/uploads\/2025\/09\/142A8776-1536x1024.jpg 1536w, https:\/\/daily.jusconnect.com\/~www\/wp-content\/uploads\/2025\/09\/142A8776-2048x1365.jpg 2048w, https:\/\/daily.jusconnect.com\/~www\/wp-content\/uploads\/2025\/09\/142A8776-750x500.jpg 750w, https:\/\/daily.jusconnect.com\/~www\/wp-content\/uploads\/2025\/09\/142A8776-1140x760.jpg 1140w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<\/div>\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>A Global Issue Requiring a Global Approach<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">While speaking in Beijing, Pitkowitz drew on developments in both China and Europe to illustrate that the intersection of AI and dispute resolution is a global concern. He pointed to the EU\u2019s <a href=\"https:\/\/jusmundi.com\/en\/document\/treaty\/en-regulation-eu-2024-1689-of-the-european-parliament-and-of-the-council-of-13-june-2024-laying-down-harmonised-rules-on-artificial-intelligence-and-amending-regulations-ec-no-300-2008-eu-no-167-2013-eu-no-168-2013-eu-2018-858-eu-2018-1139-and-eu-2019-2144-and-directives-2014-90-eu-eu-2016-797-and-eu-2020-1828-artificial-intelligence-act-eu-ai-act-2024-thursday-13th-june-2024\" target=\"_blank\" rel=\"noopener\" title=\"\"><strong>Artificial Intelligence Act (EU) 2024\/1689)<\/strong><\/a>, set to be the world\u2019s first comprehensive AI legal framework. Adopted in 2024, this EU AI Act will classify AI systems used in judicial or quasi-judicial decision-making as <strong>\u201chigh-risk\u201d<\/strong>, subjecting them to stringent requirements for transparency, documentation, testing, and <strong>human oversight<\/strong>. For example, AI tools that help judges or arbitrators analyze facts or draft decisions fall into the high-risk category under this law.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Pitkowitz posed a provocative question: <em>What happens if an arbitral tribunal\u2019s use of AI doesn\u2019t meet these new standards?<\/em> Could a losing party invoke the EU AI Act to challenge an award or resist its enforcement in court? He noted that these scenarios are no longer far-fetched. In fact, legal experts have already begun contemplating whether non-compliance with AI transparency and oversight obligations might violate public policy or due process to the extent of imperiling an award (being set aside in the worst case).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>\u201cThese are not just academic questions,\u201d<\/strong> Pitkowitz remarked. They strike at the heart of what makes arbitration credible and enforceable across borders. As AI technologies and regulations evolve at alarming speed, it is imperative for the arbitration community\u2019s approach to keep up with the everlasting development and adopt accordingly. Pitkowitz urged collaboration across jurisdictions and institutions in developing coherent guidelines: a fragmented approach could lead to uncertainty, whereas a broadly harmonized set of best practices would ensure AI is used responsibly worldwide.<\/p>\n\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Embracing Innovation with Guardrails<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Pitkowitz concluded his address with a balanced call to action. He warned against both <strong>uncritical embrace<\/strong> of AI and <strong>fear-driven rejection<\/strong>. Instead, he advocated for <em>\u201cthoughtful integration\u201d<\/em> \u2013 welcoming AI\u2019s efficiency gains and innovative potential <strong>with proper guardrails in place<\/strong>. Those guardrails, as he outlined, will come largely from arbitral institutions taking initiative: through guidelines like those of VIAC and CIETAC, through updating arbitration rules, and through offering tools that promote transparency and equality.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>\u201cIf we embrace AI without thinking critically, we risk turning arbitration into a technological fa\u00e7ade,\u201d<\/strong> he said. <strong>\u201cIf we reject AI out of fear, we risk falling behind the demands of commercial reality.\u201d<\/strong> The solution lies in finding a middle path: embrace the benefits of AI \u2013 such as faster analysis, better management of large case files, and cost savings \u2013 but always prioritize <strong>human judgment, party consent, and fairness standards as core principles in arbitration<\/strong>.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>ABOUT THE AUTHOR<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Dr <a href=\"https:\/\/jusconnect.com\/en\/p\/nikolaus-pitkowitz\" target=\"_blank\" rel=\"noopener\" title=\"\"><strong>Nikolaus Pitkowitz<\/strong><\/a> is the founding partner and head of dispute resolution at <a href=\"https:\/\/jusconnect.com\/en\/d\/profile\/firm\/pitkowitz-partners\" target=\"_blank\" rel=\"noopener\" title=\"\"><strong>Pitkowitz &amp; Partners<\/strong><\/a> and President of the <a href=\"https:\/\/jusconnect.com\/en\/d\/profile\/institution\/en-viac-vienna-international-arbitral-centre\" target=\"_blank\" rel=\"noopener\" title=\"\"><strong>Vienna International Arbitral Centre<\/strong><\/a><strong> <\/strong>(<strong>VIAC<\/strong>). Recognized as one of Austria\u2019s leading arbitration practitioners, he has acted as counsel and arbitrator in over 130 international cases across Europe, the US, and Asia, including Austria\u2019s largest-ever arbitration. He is a Fellow of the <a href=\"https:\/\/jusconnect.com\/en\/d\/profile\/institution\/en-ciarb-the-chartered-institute-of-arbitrators\" target=\"_blank\" rel=\"noopener\" title=\"\">Chartered Institute of Arbitrators<\/a> (<strong>CIArb<\/strong>), a court member of the <a href=\"https:\/\/jusconnect.com\/en\/d\/profile\/institution\/en-casablanca-international-mediation-and-arbitration-centre\" target=\"_blank\" rel=\"noopener\" title=\"\">Casablanca International Arbitration and Mediation Centre<\/a> (<strong>CIMAC<\/strong>), and co-editor of the Austrian Yearbook on International Arbitration. He frequently lectures and publishes, with more than 50 works on arbitration and dispute resolution, including a monograph on Setting Aside Arbitral Awards and the Handbook on Third Party Funding in International Arbitration. <strong>Contact:<\/strong> <a href=\"mailto:n.pitkowitz@pitkowitz.com\" target=\"_blank\" rel=\"noopener\" title=\"\">n.pitkowitz@pitkowitz.com<\/a>.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><a href=\"https:\/\/jusmundi.com\/en\" target=\"_blank\" rel=\" noreferrer noopener\"><img decoding=\"async\" width=\"2560\" height=\"318\" src=\"https:\/\/dailyjus.com\/wp-content\/uploads\/2025\/11\/Group-905-scaled.jpg\" alt=\"\" class=\"wp-image-288139\" srcset=\"https:\/\/daily.jusconnect.com\/~www\/wp-content\/uploads\/2025\/11\/Group-905-scaled.jpg 2560w, https:\/\/daily.jusconnect.com\/~www\/wp-content\/uploads\/2025\/11\/Group-905-300x37.jpg 300w, https:\/\/daily.jusconnect.com\/~www\/wp-content\/uploads\/2025\/11\/Group-905-1024x127.jpg 1024w, https:\/\/daily.jusconnect.com\/~www\/wp-content\/uploads\/2025\/11\/Group-905-768x95.jpg 768w, https:\/\/daily.jusconnect.com\/~www\/wp-content\/uploads\/2025\/11\/Group-905-1536x191.jpg 1536w, https:\/\/daily.jusconnect.com\/~www\/wp-content\/uploads\/2025\/11\/Group-905-2048x254.jpg 2048w, https:\/\/daily.jusconnect.com\/~www\/wp-content\/uploads\/2025\/11\/Group-905-750x93.jpg 750w, https:\/\/daily.jusconnect.com\/~www\/wp-content\/uploads\/2025\/11\/Group-905-1140x142.jpg 1140w\" sizes=\"(max-width: 2560px) 100vw, 2560px\" \/><\/a><\/figure>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\">*<em><em>The&nbsp;views&nbsp;and opinions expressed by authors are theirs and do not necessarily reflect those of their organizations, employers, or Daily Jus, Jus Mundi, or Jus Connect.<\/em><\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>China Arbitration Summit 2025: VIAC President calls on arbitral institutions to lead AI integration, balancing innovation with fairness and due 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