The American Arbitration Association–International Centre for Dispute Resolution is entering a new era of digital conflict resolution with the launch of an artificial intelligence tool tailored specifically for construction disputes, the organization said Nov. 3. The decision marks one of the first major moves from a national arbitration body to operationalize AI within formal dispute resolution.
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The system is intended to serve two-party, documents-only construction cases, where time-sensitive decisions are critical to keeping projects on schedule. Unlike generative legal tools that have sparked controversy in court filings, AAA’s platform is built around mandatory human oversight to prevent inaccuracies and ensure accountability.
According to the announcement, the platform relies on multiple layers of human review. The two involved parties must validate the AI-generated responses before they are finalized, and a human arbitrator still issues the award after examining the tool’s suggestions.
AAA-ICDR Chief Operations and Revenue Officer Frank Rossi emphasized the industry impact, saying, “The construction industry demands outcomes that are fast, fair, and clear — making it an excellent launchpad for this solution.” He added, “We’re reshaping expectations for what’s possible in dispute avoidance and resolution.”
Industry experts argue the rollout reflects a pivotal moment for dispute resolution. Michael Vardaro, managing partner at Zetlin & De Chiara and an AAA-ICDR arbitrator, told Construction Dive that the rollout is an unprecedented move. “They’ve gotten guidelines, but this is the first time that one of the organizations has come out and says, ‘We’re going to embrace this technology, and here’s how we’re going to do it,’” Vardaro explained.
AAA plans to expand the tool beyond construction as it proves reliable. Future features may include multi-party claims, cross-border dispute capabilities, cultural considerations, and use in higher-value cases. Rossi said the organization expects 20% to 25% time savings across the entire arbitration process.
AI could be especially valuable in cases where prolonged disputes threaten to halt active construction work. Vardaro highlighted that a fast, reviewable decision allows jobsites to continue progressing, noting that a delayed resolution can freeze financial flows, block subcontractor payments, and stall critical path schedules.
With construction litigation often tied to tight deadlines, change orders, supply chain delays, and contractual disputes, even a single stalled arbitration can multiply project costs. Therefore, the ability to get quick, validated decisions represents a major competitive advantage for project owners and contractors.
Despite its potential, experts warn that AI legal tools have already had public missteps—ranging from fabricated case citations to sloppy automated filings referred to as “AI slop.” Vardaro cautioned that strong oversight is not optional for dispute tools, saying that part of the review structure must ensure the AI does not overlook “something so egregious that it affects the arbitration decision.”
He added a forward-looking reminder: “Broadly speaking, we’re at the infancy of this. And so, you know, who knows where we’ll be even just a year from now.”
This launch places AAA-ICDR at the forefront of an AI race already underway across construction and legal tech. As builders rapidly adopt AI for estimating, bidding, scheduling, and equipment management, arbitration may now become another battleground for competitive advantage.
The tool’s success could ultimately influence industry contract language, digital evidence standards, and dispute strategy in the years ahead.
Originally reported by Matthew Thibault in Construction Dive.
