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
The surprising case for AI judges
The Verge, Decoder Podcast
Nilay Patel
AAA President Bridget McCormack discusses the potential role of AI in legal dispute resolution. She explores how AI could assist in arbitration processes, emphasizing its capacity to analyze large datasets and provide insights that may aid arbitrators in decision-making. McCormack also addresses the challenges and ethical considerations associated with integrating AI into the legal field.
Artificial intelligence could become the preferred judge of minor disputes: UK master of rolls
Canadian Lawyer
Jacqueline So
UK Master of the Rolls Geoffrey Vos suggested that AI could become the preferred resolver for minor disputes, as individuals increasingly use AI tools like ChatGPT for legal consultations. He predicted a rise in civil, family, and tribunal claims due to AI’s ability to generate them for free, and noted that AI resolutions would be quicker and cheaper than human judges. Vos also anticipated that AI hallucinations would soon be a thing of the past.
Harvey reportedly raising at $11B valuation just months after it hit $8B
TechCrunch
Julie Bort
Legal AI startup Harvey is reportedly in discussions to raise an additional $200 million, bringing its valuation to $11 billion. This follows a $160 million funding round at an $8 billion valuation in December 2025. Harvey’s annual recurring revenue reached $190 million by the end of 2025, up from $100 million in August.
Legal and financial firms are increasingly adopting private large language models to enhance their enterprise AI strategies, driven by heightened security concerns. This trend reflects a growing emphasis on data privacy and control within these sectors, as organizations seek to leverage AI capabilities while mitigating potential risks associated with public AI models.
AI Won’t Automatically Make Legal Services Cheaper
Lawfare
Justin Curl, Sayash Kapoor, Arvind Narayanan
Advanced AI alone will not reduce legal costs due to three main obstacles: regulations restricting unauthorized legal practice and entity-based limitations, the adversarial nature of litigation leading to increased burdens despite technological adoption, and the necessity for human oversight in legal processes that limits the speed of AI implementation.
Generative AI and LLM Developments
Anthropic Covers Costs of Electricity Price Increases in Data Centers
NBC News
Jared Perlo
Anthropic is absorbing the rising electricity costs in its data centers to maintain the affordability of its AI services. This decision aims to prevent price hikes for customers despite increased operational expenses.
The AI Trilemma
Foreign Affairs
Sebastian Elbaum, Sebastian Mallaby
The United States faces challenges in balancing the development, regulation, and deployment of artificial intelligence. A strategic approach, with international collaboration, is in order to ensure AI advancements align with national interests and ethical standards.
Grading AI 2027’s 2025 Predictions
AI Futures Blog
Eli Lifland, Daniel Kokotajlo
In early 2026, AI progress is evaluated against the AI 2027 scenario. Quantitative metrics show progress at approximately 65% of the predicted pace, with most qualitative predictions on track. Key observations include slower-than-expected SWEBench-Verified progress, coding time horizons aligning with central AI-2027-speed trajectories, and revenue growth slightly surpassing predictions, while valuations lag behind.
A Blueprint for Enterprise-Wide Agentic AI Transformation
Harvard Business Review
Marcus Oliver, Ryan Faris
Organizations face challenges in AI adoption due to foundational technical issues, uncontrolled proliferation of siloed AI agents, and a focus on automating existing processes rather than reimagining them. To achieve transformative AI integration, companies should establish a cohesive ecosystem, address technical debt, implement a strategic framework, and collaborate with expert partners. This approach enables the creation of a unified, intelligent system that drives innovation and efficiency.
Per-Seat SaaS Licensing Faces Pressure as AI Agents Do More Work
Geeky Gadgets
Julian Horsey
The software industry experienced a $285 billion market decline due to AI’s ability to automate tasks traditionally performed by professionals, challenging the per-seat licensing model. Companies like Thomson Reuters and LegalZoom saw stock price drops as investors questioned the viability of existing business models. SaaS providers must innovate pricing, product design, and strategies to remain competitive in an AI-driven market.
AI Regulation and Policymaking
Congress Enacts AI Provisions in Five-Bill Spending Package
Akin Gump Strauss Hauer & Feld LLP
Reggie Babin et al.
On February 3, 2026, the House passed the Senate-approved fiscal year 2026 five-bill spending package (H.R. 7148) by a vote of 217-214. The package includes the Defense, Labor—Health and Human Services—Education, Financial Services, National Security, and Transportation—Housing and Urban Development bills, each containing several AI-focused provisions.
11th and 17th Circuits Order Disclosure, Certification of AI Use in Court Filings
The Florida Bar News
Jim Ash
The 11th and 17th Judicial Circuits in Florida now mandate that attorneys and self-represented litigants disclose the use of generative AI in court filings and certify the accuracy of AI-generated content. Non-compliance may lead to sanctions, including striking pleadings, monetary penalties, contempt proceedings, or disciplinary referrals. Chief judges in Miami-Dade and Broward counties issued administrative orders on January 15 and 26, respectively, outlining these requirements.
A new bill in New York would require disclaimers on AI-generated news content
Nieman Lab
Andrew Deck
New York legislators have introduced the NY FAIR News Act, mandating news organizations to label content substantially created by generative AI and to have human oversight before publication. The bill aims to address concerns over AI-generated content being false or misleading and potentially plagiarizing original sources. It also seeks to protect confidential information from AI access and includes labor protections for journalists against adverse effects of AI adoption.
AI, Violence, and International Law: A Conversation with Frédéric Mégret
JURIST
AmirAli Maleki
Frédéric Mégret, Professor of International Law at McGill University, discusses the implications of AI in warfare. He highlights concerns that delegating lethal decisions to machines may normalize violence by detaching it from human accountability. Mégret emphasizes that while AI can process information about harm, it lacks the capacity for empathy, potentially leading to a desensitization of the ethical considerations in warfare. He also notes the challenges in achieving a global consensus on regulating lethal autonomous weapons systems.
AI News from Other Fields
AI Video of Tom Cruise and Brad Pitt Raises Concerns Among Writers
The Hollywood Reporter
James Hibberd
An AI-generated video featuring Tom Cruise and Brad Pitt has sparked concerns among writers, who fear it could lead to job losses and devalue their work. The video, created using deepfake technology, showcases the actors in a scene from a fictional film, highlighting the potential for AI to replicate performances and scripts. Writers are calling for regulations to address the impact of AI on the entertainment industry.
AI is Automating Injustice in American Policing
Salon / MSN
Nicholas Liu
AI is increasingly being integrated into American policing, leading to concerns about potential biases and injustices. The use of AI in law enforcement raises questions about accountability, transparency, and the risk of perpetuating existing inequalities.
Policing with a Digital Partner: Preparing Law Enforcement for the Age of AI
Police1
Edward Caliento
AI is transforming law enforcement by providing officers with digital partners that assist in tasks ranging from scene response to report writing. These AI-powered tools, such as wearable assistants, guide officers through procedures, offer tutorials, and help document incidents, thereby enhancing efficiency and reducing workload. To effectively integrate AI, agencies must establish appropriate policies, training, and oversight to ensure ethical and effective use.
Harnessing the power of gen AI in private markets
McKinsey & Company
Alfonso Pulido et al.
Investors are increasingly adopting generative AI to expedite investment analysis, with 67% anticipating a ‘transformational’ impact within five years. However, reliance solely on large language models (LLMs) can lead to biases, inaccuracies, and omissions. Integrating proprietary research data with LLM outputs enhances precision, enabling investors to identify genuine growth opportunities and mitigate risks effectively.
Rules of Mysterious Ancient Roman Board Game Decoded by AI
Scientific American
Jackie Flynn Mogensen
Researchers have used AI to decipher the rules of an ancient Roman board game found in the Netherlands. The game, dating back to the late Roman Empire, was identified as a ‘blocking game’ similar to tic-tac-toe. By analyzing wear patterns on the stone board and simulating gameplay, the team reconstructed the game’s mechanics, revealing it as the earliest known example of such a game in Europe.
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