THE EVOLVING LANDSCAPE OF AI REGULATION IN INTERNATIONAL COMMERCIAL ARBITRATION: LESSONS FOR ALBANIAN JURISDICTION
Artificial Intelligence (AI) tools are increasingly available in international arbitration for purposes of document review, legal research, and award drafting, to mention but a few. However, their use in arbitration poses significant legal and ethical challenges, including risks of bias, lack of transparency, confidentiality breaches, and potential violations of due process.
Current responses to such challenges range between soft-law guidelines from arbitral institutions as well as hard-law rules such as the EU AI Act. The latter classifies AI in adjudicative contexts as “high-risk”, imposing obligations for transparency and risk management as well as sanctions. In this context, questions arise about the governance models to address any misuse of AI in commercial arbitration.
This article explores current global discussions about such regulatory interventions. It then focuses on Albanian jurisdiction by identifying lessons to be drawn therefrom. While recognizing the values of the self-regulation of AI in commercial arbitration, it is admitted that the hard-law model pursuant to the AI Act will likely prevail in Albania, given its path toward EU integration. In view of the ongoing global discourse about the two key models as well as some criticism associated with the EU AI Act’s application to commercial arbitration, the paper suggests that Albania should undertake a diligent evaluation of such developments and their interaction with domestic law, before moving forward with the harmonization of the EU legislation agenda. Moreover, a hybrid approach, whereby binding minimum safeguards are combined with flexible soft-law guidelines, may result as plausible for Albania to follow. This should satisfy the EU harmonization requirements and at the same time enhance commercial arbitration practices by preserving its essential values of flexibility and party autonomy.
Keywords: Albania, alternative dispute resolution, arbitration, arbitral proceedings, artificial intelligence.
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