This human-curated, AI-generated newsletter from the American Arbitration Association’s AAA-ICDR Institute keeps you up on AI news over the past week that is relevant to dispute resolution and to legal services more broadly.
AI in ADR and Legal Services
AI Empathy in Mediation; When Algorithms Show Compassion
Mediate.com
Michael Lardy
Empathy is essential in mediation for building trust and facilitating open communication. Recent advancements in AI, particularly large language models (LLMs) like ChatGPT, have demonstrated the ability to identify and appropriately respond to emotional states, sometimes outperforming humans. However, concerns exist about the “illusion of empathy,” where AI may simulate warmth without true understanding, which is crucial in the complex dynamics of mediation. This article explores the current research on AI’s capacity for empathy, its potential applications and limitations in mediation, and the ethical and social implications of integrating AI into this field.
Consideration of Artificial Intelligence in Arbitration Terms of Reference
Crowell & Moring LLP
As AI becomes more integrated into legal practices, arbitration professionals are encouraged to address AI’s role in their Terms of Reference (TOR) and procedural orders. Key considerations include defining AI’s permissible uses, ensuring transparency and disclosure, maintaining human oversight, and safeguarding confidentiality. Establishing clear AI guidelines within TORs is anticipated to become standard in arbitration proceedings.
Jamie Tso Interview: Vibe-Coding Your Own Legal AI Tools
Artificial Lawyer
Jamie Tso, a senior associate at Clifford Chance, has developed sophisticated legal AI tools through “vibe coding,” enabling lawyers to create tailored solutions without extensive coding expertise. This approach challenges traditional reliance on external legal tech platforms, suggesting a shift towards in-house development of specialized tools. Tso emphasizes the potential for lawyers to build and maintain their own AI applications, fostering innovation and efficiency within firms.
Court System Says Hallucinating AI System Is Ready to Be Deployed After Dramatically Lowering Expectations
Futurism
Frank Landymore
The Alaska court system’s AI chatbot, the Alaska Virtual Assistant (AVA), initially faced significant issues, including generating incorrect information and providing unhelpful responses. After extensive revisions and lowering expectations, AVA is now set for public launch in late January, aiming to assist individuals with probate procedures despite previous shortcomings.
Judges Identifying Suspected AI Hallucinations in PA Court Cases, Including One at the Highest Levels
PennLive / Spotlight PA
Sarah Boden
Pennsylvania judges are increasingly recognizing and addressing inaccuracies generated by AI tools in court proceedings. AI hallucinations can lead to incorrect information being presented as fact. The judiciary is implementing measures to detect and correct these issues to maintain the integrity of legal processes.
The New Physics of Legal Tech: Infrastructure, Capital, and the Coming AI Realignment (Part 1 of 2)
LawNext
Bob Ambrogi, Ken Crutchfield
In 2025, the legal tech industry witnessed significant developments, including Harvey’s $8 billion valuation and Clio’s acquisition of vLex. Looking ahead to 2026, Crutchfield identifies six macro trends shaping the market: the geopolitical impact of the AI Industrial Revolution, the dominance of major tech companies, the expansion of LLMs in legal applications, increasing pressure for return on investment, and the challenges posed by unauthorized practice of law. Legal innovators should focus on defensible applications beyond LLMs and monitor policy changes that may influence the AI landscape.
2026 AI Legal Forecast: From Innovation to Compliance
Baker Donelson
Edward D. Lanquist, Alexandra P. Moylan
In 2025, the legal landscape shifted from AI innovation to accountability, with new regulations in the EU and U.S. enforcing standards and courts addressing pivotal copyright cases. Organizations must now actively govern AI, focusing on issues like intellectual property, liability, regulatory compliance, corporate strategy, and professional responsibility. Proactive AI governance and compliance programs are essential to mitigate risks and maximize AI investments.
Generative AI and LLM Developments
NVIDIA Rubin Platform Adds NVLink 6 at 3.6 TBps & HBM4 with 22 TBps Bandwidth
Geeky Gadgets
Julian Horsey
NVIDIA’s Rubin platform, unveiled at CES 2026, introduces the Vera Rubin GPU, delivering 35 petaflops for training and 50 petaflops for inference, significantly enhancing AI processing capabilities. The platform integrates six advanced components, including NVLink 6 interconnect with 3.6 terabytes per second bandwidth and HBM4 memory offering 22 terabytes per second bandwidth, optimizing performance for complex AI tasks. The Rubin platform is expected to reshape the AI hardware market, with major players like OpenAI and CoreWeef adopting it in 2026.
AI chatbot maker Anthropic plans to raise $10bn to reach $350bn valuation
The Guardian
Reuters
Anthropic, the creator of the Claude chatbot, is seeking to raise $10 billion, aiming to achieve a valuation of $350 billion. This represents a significant increase from its previous valuation of $183 billion in September. The funding round is expected to close soon, with Singapore’s sovereign wealth fund GIC and Coatue Management leading the investment. The company plans to more than double its annualized revenue run rate this year, driven by growing enterprise adoption of its AI products.
AI Regulation and Policymaking
The Fog of AI: What the Technology Means for Deterrence and War
Foreign Affairs
Brett V. Benson, Brett J. Goldstein
China is heavily investing in military AI, aiming to match or surpass U.S. military capabilities. However, challenges such as insufficient relevant training data, difficulties in testing AI systems, and U.S. export controls on advanced semiconductors hinder progress. Additionally, the People’s Liberation Army’s hierarchical structure and centralized decision-making may impede effective AI integration, potentially limiting the military’s ability to fully leverage AI technologies in future conflicts.
National Commission calls for evidence on the regulation of AI in healthcare
UK Human Rights Blog
Robert Kellar
The UK government’s 10-year health plan aims to make the NHS the most AI-enabled healthcare system globally, necessitating a new regulatory framework for medical devices, including AI. In December 2025, the National Commission on the Regulation of AI in Healthcare issued a Call for Evidence to reform existing regulations, ensuring healthcare AI is safe, efficient, and trustworthy, and to address legal liability for adverse outcomes.
Trustworthy at Scale: An Enterprise AI Governance Framework
Medium
Pedro Távora Santos
Effective AI governance is essential for enterprises to scale AI responsibly, ensuring systems are trustworthy and compliant. Traditional governance models often fail with AI due to its dynamic and learning nature. A robust framework includes five key pillars: Intake and Approval, Data Management, Model Development, Monitoring and Maintenance, and Compliance and Ethics. Implementing these pillars helps organizations mitigate risks, maintain accountability, and foster innovation.
Controller responsibilities in AI-driven processing of vulnerable data subjects: a legal framework for risk mitigation, proportionality, and compliance
AI and Ethics
Kamrul Faisal
This study presents a legal framework outlining the responsibilities of data controllers when utilizing AI to process personal data, emphasizing the protection of vulnerable individuals. It integrates European data protection laws, including the GDPR and the EU AI Act, to establish a risk-based approach that balances technological advancement with fundamental rights. The framework focuses on risk assessment, proportional protective measures, and compliance, incorporating tools like Data Protection Impact Assessments and human oversight.
AI News from Other Fields
“Students don’t have to prove authorship of every word, they show their supervision of AI tools”
Times Higher Education
Tiatemsu Longkumer
Incorporating generative AI into academic assignments can enhance transparency and critical thinking. By requiring students to use AI in every assignment, educators can assess both the final product and the student’s engagement with the AI process. This approach emphasizes the student’s role in guiding and critically evaluating AI outputs, fostering skills in AI literacy and ethical judgment.
When AI Meets Sleep: Designing the Night of the Future
Interesting Engineering
Atharva Gosavi
REMspace, a neurotechnology company, has developed SomnoAI, an AI system designed to monitor sleep patterns and identify optimal moments for intervention. Their latest product, LucidMe Pro, is a sleep mask that uses SomnoAI to detect when a user enters REM sleep, facilitating lucid dreaming and enhancing sleep quality. This innovation aims to transform sleep from a passive activity into an interactive experience, offering users greater control over their rest and cognitive processes.
AI Prescriptions: Utah’s Doctronic Leads the Way
The Hill
Sarah Davis
Utah’s Doctronic is pioneering the integration of artificial intelligence into medical prescriptions, aiming to enhance accuracy and efficiency in patient care. By leveraging AI, the company seeks to reduce human error and streamline the prescription process, potentially transforming healthcare delivery in the state.
Dutch Court rules AI-written wedding vows invalid, nullifying marriage
Digital Trends
Moinak Pal
A Dutch court invalidated a marriage after the couple’s vows, generated by ChatGPT, lacked the required legal language. The ceremony, officiated by a friend using AI-generated vows, omitted the mandatory declaration of accepting marital rights and duties under Dutch law. Despite the couple’s emotional plea, the court emphasized adherence to legal formalities, leading to the annulment of their marriage.
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