AI in ADR
Building the AAA’s First AI Arbitrator | A Survey of State AI Regulation | AI Integration Is the New Moat | 72 Hours with Friend AI
This human-curated, AI-generated newsletter from the American Arbitration Association’s AAA-ICDR Institute and AAAiLab keeps you up on AI news over the past week that is relevant to alternative dispute resolution (ADR).
AI in ADR and Legal Services
Live from MAICON 2025: Building AAA’s First AI Arbitrator
American Arbitration Association | AI and the Future of Law Podcast
Bridget McCormack, Jen Leonard
“Can an AI fairly decide a dispute—and win party trust? Recorded live at MAICON 2025 in Cleveland, this episode explores the American Arbitration Association’s first AI arbitrator—an AI-native, documents-only workflow for two-party construction disputes with a human arbitrator in the loop. AAA President Bridget McCormack explains why AAA started with a closed-universe case type, how a multi-agent system synthesizes pleadings, issues, evidence, and applicable law, and why reflecting parties’ claims back to them can strengthen procedural fairness and outcome acceptance.”
Meet the AI Arbitrator: A Product Preview
American Arbitration Association
“The American Arbitration Association (AAA) is redefining dispute resolution with its newest innovation—the AI arbitrator. This guided demo shows how AI-driven legal reasoning, human oversight, and rigorous ethical safeguards work together to deliver faster, cost-effective, and trusted outcomes.”
Arbitration and AI: From Data Processing to Deepfakes. Outlining the Potential—and Pitfalls—of AI in Arbitration
K&L Gates
Matthew R. M. Walker, Jack B. Salter
The integration of AI, especially large language models, is rapidly transforming international arbitration by streamlining tasks like document review, legal research, predictive analytics, and hearings. While AI offers efficiency and cost savings, it also introduces new risks—such as hallucinated case law, deepfakes, and data security challenges—that require careful oversight and robust ethical standards. Success will depend on legal professionals’ ability to adapt, upskill, and responsibly harness AI’s potential without compromising legal integrity.
Lawyers Caught Submitting AI Briefs Face Worse Than The Court’s Monetary Sanctions
Forbes
Jay Adkisson
Lawyers who submit AI-generated legal briefs without thorough review risk severe ethical violations, including incompetence, frivolous arguments, dishonesty, and fraudulent billing—potentially leading to suspension or disbarment. While AI can assist with tasks like summarizing documents, ultimate responsibility for accuracy and integrity lies with the attorney. Overreliance on AI not only endangers clients and reputations but also undermines essential legal reasoning skills.
Litera has integrated its new AI legal agent, Lito, directly into its drafting and workflow tools, making advanced AI capabilities available to all users at no extra cost. Designed to streamline legal work through embedded, explainable automation, Lito offers guided workflows and specialized legal skills, aiming to boost efficiency for firms of all sizes by placing AI directly within familiar platforms like Microsoft 365 and NetDocuments.
Legora Raises $150m at $1.8bn—Platform War Heats Up
Artificial Lawyer
Legora, a legal AI productivity startup, secured $150 million in new funding at a $1.8 billion valuation, intensifying its competition with Harvey, another rapidly growing legal AI company reportedly raising funds at a much higher valuation. Both firms are expanding quickly, attracting major law firm clients and investor interest, as legal professionals worldwide increasingly adopt AI tools. The sector’s explosive growth is drawing attention from both venture capital and potentially larger tech players.
Generative AI and LLM Developments
AI Integration Is the New Moat
O’Reilly Media
Tim O Reilly
Intelligent chatbots can enhance customer service, but their true value depends on how well they are integrated with a company’s existing processes and systems. Without seamless data sharing and workflow alignment, even advanced AI tools cannot fix underlying inefficiencies. Lasting competitive advantage in an AI-driven world will hinge on organizations’ ability to reengineer and integrate their operations to fully leverage AI capabilities, rather than on AI intelligence alone.
The AI job cuts are here—or are they?
BBC
Danielle Kaye
Recent high-profile layoffs at companies like Amazon, Chegg, Salesforce, and UPS have fueled fears that AI is rapidly replacing workers, but experts caution that these cuts often reflect broader economic trends and company-specific factors rather than direct technological displacement. While some administrative roles show increased unemployment linked to AI, most job losses align with typical business cycles and post-pandemic adjustments, making it difficult to isolate AI as the primary cause.
AI-powered search engines rely on “less popular” sources, researchers find
Ars Technica
Kyle Orland
Recent research reveals that AI-driven search results, such as those from Google’s AI Overviews and other generative tools, frequently reference less popular and more obscure websites than traditional Google searches. Over half of the sources cited by these AI systems do not appear in the top 10 organic search results, and a significant portion are even absent from the top 100, highlighting a fundamental shift in how information is sourced and presented.
Billionaire Marc Andreessen Says AI Will Be So Powerful ‘Everything That Costs $100 Will Sell For A Penny’ In A Hyper-Deflation Era
Yahoo! Finance
Casey B. Renner
Deciding what to keep or discard while organizing your home can be challenging, but understanding which items are truly unnecessary can simplify the process and reduce stress. Letting go of objects that no longer serve a purpose or bring value creates more space and helps maintain a tidy, manageable living environment.
AI Regulation and Policymaking
Grassley Calls on the Federal Judiciary to Formally Regulate AI Use
grassley.senate.gov
Chuck Grassley
In a floor speech, the Senate Judiciary Committee Chairman focused on two recent orders issued by federal judges that contained false citations, fabricated quotes, and nonexistent evidence. Both orders were withdrawn, with staff misuse of AI given as an explanation. The senator urged judiciary-wide AI safeguards and warned Congress may intervene if reforms lag.
The AI landscape in the states
EY
Bridget Neill, et al.
States are increasingly exploring how to regulate artificial intelligence, with most legislative efforts focused on studying AI, targeting specific issues like deepfakes and election integrity, regulating particular applications such as employment or government use, and proposing broader frameworks for industry-wide oversight. The debate continues over whether comprehensive state-level rules will clarify or complicate the regulatory landscape for AI.
Rising Global Regulation for Artificial Intelligence
Jones Day
Governments, businesses, and researchers worldwide are grappling with the rapid evolution of AI, which is prompting new legal questions and compliance challenges. As both technology and regulations change quickly, private-sector leaders and legal teams must stay alert to emerging risks and develop robust strategies to manage the legal and regulatory complexities associated with AI.
Saudi Arabia could become an AI focal point
The Week
Justin Klawans
Saudi Arabia is leveraging its vast oil wealth, cheap energy, and available land to become a major player in artificial intelligence, aiming to attract top U.S. tech firms and develop its own state-backed AI company, Humain. While the country is investing heavily in data centers and AI infrastructure, skepticism remains about its expertise, global ambitions, and concerns over human rights and potential overcapacity in the sector.
AI News from Other Fields
AI can help authors beat writer’s block, says Bloomsbury chief
The Guardian
Lauren Almeida
Artificial intelligence is expected to become a valuable tool for authors, assisting with creative hurdles like writer’s block and helping more people start creative projects. While AI might generate content, readers are still drawn to established writers for quality and authority. The publishing industry is benefiting from AI through licensing deals, but concerns remain about copyright and the use of authors’ works to train AI systems.
The Invisible Agent: How AI Quietly Powers Thousands of Resolutions a Day
International Business Times UK
Alex Rivers
CoSupport AI offers a comprehensive automation platform for customer support, blending domain-specific AI agents, real-time assistants, and analytics to streamline workflows and boost efficiency. It enables rapid deployment, integrates with popular support tools, and emphasizes privacy, compliance, and factual accuracy. By automating routine queries and providing actionable insights, it reduces resolution times, improves satisfaction scores, and supports both startups and enterprises across diverse industries and functions.
72 Hours with Friend AI
beingonline.substack.com
Ruby Justice Thelot
A wearable AI device called Friend aims to provide companionship through text-based interactions, but falls short of delivering genuine intimacy or presence. Its design and user experience prioritize convenience and affirmation, yet overlook the richness of embodied, multisensory human connection. The device reflects a broader trend of reducing relationships to textual exchanges, raising questions about the sufficiency of digital companionship versus the significance and complexity of real-life friendship.
EA’s Attempt to Use AI for Game Development Backfiring Horribly
Futurism
Victor Tangermann
Video game companies are rapidly adopting generative AI to cut costs and automate tasks, but many developers report that these tools often create more problems than they solve, producing errors and threatening jobs. This push is causing tension between executives and staff, with employees skeptical of AI’s benefits and concerned about its impact on creative roles and job security, while also raising ethical and reputational risks for the industry.
Lawsuits Alleging Systemic Bias in AI Algorithmic Screening Tools Should Serve as Cautionary Tale
JD Supra
Michael Manoukian
As lawsuits challenge the use of AI in hiring for alleged discrimination based on race, age, and disability, courts are signaling increased scrutiny of algorithmic decision-making in employment. Employers are urged to regularly audit AI tools, ensure transparency, prioritize human oversight, and stay updated on evolving regulations to mitigate legal risks and prevent bias, making compliance an ongoing commitment rather than a one-time effort.
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