Saudi Arabia’s AI & digital transformation: Opportunities and challenges in dispute resolution
Saudi Arabia Focus
The emergence of AI in dispute resolution in Saudi Arabia is set to reshape the country’s legal practice, as legal practitioners, judicial authorities, and arbitral tribunals adapt this new technology.
Law Update: Issue 367 - Saudi Arabia & Competition Focus
Emad SalamehPartner, Head of Office - RiyadhDispute Resolution
Ahmed AmonetteSenior Associate,Dispute Resolution
Imad El EssAssociate,Dispute Resolution
The emergence of AI in dispute resolution in Saudi Arabia is set to reshape the country’s legal practice, as legal practitioners, judicial authorities, and arbitral tribunals adapt this new technology. Adherence to legal principals and procedures will be integral to the successful integration of AI into the judicial system.
Saudi Arabia is not only a leading oil producer, but also an aspiring global leader in artificial intelligence, a technology that is transforming every aspect of human life and society. As part of its ambitious Vision 2030 transformation program, the kingdom has launched several initiatives to invest in and develop AI across various sectors, including education, health, security, and economy.
A core aspect of this Saudi Arabia’s Vision 2030 transformation program is the reformation of the legal and judicial framework and one of the keys to achieving this has been the development and implementation of the latest technologies in the judicial ecosystem, to increase the efficiency of judicial procedures and create a more predictable legal environment that reassures investors and businesses.
These efforts are best exemplified by the Saudi Ministry of Justice’s launch of the Najiz platform, which has eliminated the need to visit judiciary offices by providing more than 160 online services. As well as the Ministry of Justice’s pioneering E-Litigation Project, which has led to the full digitization of the litigation process in Saudi Arabia, allowing for the electronic exchange of memorandums between the parties and the submission of documents and reports to the courts, as well as virtual hearing sessions held by video and the rendering of judgements electronically.
With the emergence of Artificial Intelligence (“AI”), Saudi Arabia aims to be at the forefront of this new technology, with ambitious plans to heavily invest in AI and we can anticipate that the judicial ecosystem will be one of the greatest beneficiaries of this technology, leading to a fundamental reshaping of how law is practiced and disputes are resolved, which will bring about new opportunities, but also raise new challenges.
Saudi Arabia’s ambitious AI plans lead to a fundamental reshaping of how law is practiced and disputes are resolved
AI is an overarching term used to describe technologies that enable computers and machines to simulate human intelligence and problem-solving capabilities, meaning that technologies such as Siri and Alexa or even Google search fall under this umbrella. However, most recently AI has come to the public’s attention due to the release of generative AI tools such as ChatGPT, which generate sophisticated “output” based on algorithmic models trained on vast amounts of data, including text, images, music, and software codes.
AI is already transforming the practice of law and dispute resolution by enhancing efficiency and accessibility. AI systems provide new methods and tools for resolving disputes, such as predictive analytics, automated negotiation systems, and enhanced case management. However, the integration of AI also requires regulation, legislation, and adherence to existing legal principles. This article explores the potential impact of AI on judicial and arbitration procedures and suggests ways to benefit from AI while protecting the rights of parties and ensuring justice.
The use of AI algorithms to analyze past cases and predict outcomes can aid parties and decision-makers by providing forecasts based on historical data. For example, AI can estimate the likelihood of winning a case, the expected duration of the judicial procedure, and the optimal settlement amount. Predictive analytics can reduce time and resources by helping parties to assess their options and make informed decisions.
Automated negotiation systems facilitate negotiations by processing documents, drafting agreements, and suggesting strategies. Automated negotiation systems can streamline the dispute resolution process by automating tasks and generating solutions. For example, AI can analyze the preferences and interests of the parties, generate proposals, and evaluate counteroffers. Automated negotiation systems can also allow focus on nuanced case aspects and improve communication and cooperation.
Enhanced case management tools use AI to improve the organization and analysis of case information. Enhanced case management can improve the accuracy and quality of dispute resolution by identifying critical case elements, flagging issues, and recommending procedural steps. For example, AI can extract relevant information from documents, classify and summarize evidence, and suggest legal arguments and authorities. Enhanced case management can also reduce the workload and complexity of the case for the parties and the decision-makers.
Despite the potential benefits of AI, there are also challenges and ethical considerations that will need to be addressed as this technology is adapted by legal practitioners and the judiciary.
The Najiz platform, launched by the Saudi Ministry of Justice, currently offers more than 160 services online, reducing the need to visit judiciary offices in person.
One of the main challenges will be ensuring the integrity and reliability of AI algorithms, to prevent bias and errors. This is because AI algorithms may be influenced by the data they are trained on, the assumptions they are based on, and the objectives they are designed for. For example, AI may produce inaccurate or unfair predictions or solutions if the data is incomplete, outdated, or skewed. Therefore, AI algorithms will need to be tested, verified, and monitored to ensure their validity and quality, for example by using independent audits, peer reviews, or feedback mechanisms.
Another challenge is ensuring the confidentiality, privacy, and security of the information processed by AI, which may be sensitive or personal. AI systems may collect, store, and share large amounts of data, which may pose risks of unauthorized access, misuse, or disclosure. For example, AI may expose the parties' identities, strategies, or preferences, or reveal confidential or privileged information. Therefore, AI systems will need to comply with data protection laws, such as the Personal Data Protection Law issued by Royal Decree in 2021, as well as ethical standards such as the Rules of Professional Conduct for Lawyers issued by the Ministry of Justice.
A third challenge is ensuring that the use of AI complies with legal principles, such as the right to a fair trial and the independence of the judiciary. AI systems may affect the procedural and substantive rights of the parties, and the role and authority of the decision-makers. For example, AI may limit the parties' participation, representation, or access to information, or influence the decision-makers' discretion, impartiality, or accountability. Therefore, AI systems will need to be designed and used in a manner that respects the legal framework and the principles of justice and provides transparency and justification for the decisions and conclusions reached by the AI algorithm.
AI is poised to have a significant impact on the way disputes are resolved in Saudi Arabia as well as in the broader MENA region, as legal practitioners, judicial authorities, and arbitral tribunals adapt this emerging technology, as it will offer new tools and methods that will reshape how law is practiced and disputes are resolved. However, it will also require that legislators adapt quickly to ensure that its use by legal practitioners and the judiciary is in compliance with legal principals and procedures
For further information,please contact Emad Salameh, Ahmed Amonette and Imad El Ess.
Published in April 2024
