A Professor of International Law at Obafemi Awolowo University, Ile-Ife, Osun State, Prof. Adeola Ayodele Oluwabiyi, has called for the development of internationally recognised rules to regulate the use of Artificial Intelligence in international arbitration.
Oluwabiyi made the call while delivering the 428th inaugural lecture of OAU, titled, “Harnessing Artificial Intelligence in International Arbitration.”
She warned that although AI was capable of making arbitration faster, cheaper and more efficient, its growing application without adequate regulation could undermine fairness, confidentiality, transparency and the enforceability of arbitral awards.
The don said there was currently no uniform international legal framework governing the use of AI in international arbitration, describing the gap as a major challenge that must be urgently addressed.
She said, “There has been no uniform standard of law to regulate utilisation of AI tools in arbitral proceedings at the international level.”
According to her, the absence of specific rules could lead to inconsistent approaches across jurisdictions and expose sensitive arbitration data to security threats, including hacking, data leakage, viruses and technological failures.
She therefore urged international institutions such as the United Nations Commission on International Trade Law and the International Bar Association to develop comprehensive and enduring guidelines for the use of AI in arbitration.
“It will therefore be appropriate for recognised international institutions, such as the UNCITRAL or International Bar Association, to come up with guidelines that can stand the test of time, and comprehensive enough to address the challenges raised by application of AI tools in international arbitration,” she stated.
Oluwabiyi said the proposed framework should address disclosure, confidentiality, cybersecurity, human oversight, accountability, algorithmic bias and the enforceability of AI-assisted arbitral awards.
She maintained that Nigeria also needed complementary legislation to bring its arbitration regime in line with technological developments.
“In jurisdictions like Nigeria, the conversation around AI in arbitration is only beginning. Current laws do not address AI use in legal and arbitral proceedings, creating uncertainty for legal representatives, arbitral tribunal and institutions,” she said.
The professor, however, stressed that AI should complement rather than replace human arbitrators.
She said, “AI should augment rather than replace human judgment in arbitration. The future lies in leveraging technological innovation while upholding the due process rights, impartiality, and procedural fairness that form the bedrock of international arbitration.”
Oluwabiyi explained that AI was already being deployed in several aspects of international arbitration, including legal research, document review, case management, transcription of proceedings, evidence analysis, appointment of arbitrators and preparation of arbitral awards.
She cited AI-powered tools capable of reviewing thousands of documents and identifying relevant information, noting that some systems could significantly reduce the time required for contract review.
According to her, a tool known as Kira had been credited with helping lawyers and arbitrators reduce the time spent reviewing contracts by between 20 and 60 per cent.
She added that AI-powered transcription tools could also reduce the cost of traditional arbitration reporting, while large language models could assist arbitrators with legal research, case analysis and drafting.
But Oluwabiyi warned that the efficiency offered by AI must not be allowed to compromise the integrity of the arbitral process.
She said AI systems could produce inaccurate or irrelevant results when trained on defective or biased data, thereby entrenching unfair patterns.
“AI will often confidently assert incorrect answers. Such hallucinations can even come with fabricated footnotes and sources which includes entirely made up case names,” she warned.
The professor cited a 2025 case in the United States in which three lawyers were sanctioned after relying on non-existent cases allegedly generated through AI-assisted research.
She said the development demonstrated the risks involved in relying blindly on AI-generated legal materials.
Oluwabiyi also identified the “black box” problem as a major concern, explaining that some AI systems could generate outcomes without providing sufficient transparency on how conclusions were reached.
She said this was particularly dangerous in arbitration because decisions must be reasoned, fair and capable of withstanding scrutiny during enforcement.
“Obviously, how an arbitrator makes a reasoned award requires a high level of humanness. The tribunal has to understand the facts of the case and assess the stand of both parties,” she said.
The don further warned that AI-generated arbitral decisions could face enforcement challenges where their use violated public policy in the jurisdiction where enforcement was sought.
She noted that the New York Convention allowed courts to refuse enforcement of arbitral awards on public policy grounds, making caution essential where AI was involved in the decision-making process.
Oluwabiyi said AI could also introduce risks involving confidentiality because lawyers and arbitrators might upload sensitive client information into third-party AI systems.
She therefore called for “robust cybersecurity protocols and strict confidentiality safeguards” to protect arbitration materials from unauthorised access and misuse.
She also advocated mandatory technological competence for arbitrators and legal practitioners using AI tools.
According to her, arbitrators must understand the functionality, limitations and risks of AI systems before deploying them in arbitral proceedings.
She stressed that arbitrators remained personally responsible for decisions reached in cases where AI tools were used.
“While the use of AI-powered tools to support the arbitrator’s work is permitted, it is strictly prohibited for these tools to replace the arbitrator’s judgment and expertise,” she stated.
Oluwabiyi said AI could nevertheless transform international arbitration by reducing workload, accelerating the review of evidence and documents and improving case management.
She observed that more than 90 per cent of arbitration practitioners surveyed in the 2025 International Arbitration Survey anticipated using AI for legal research, document review and case management within five years.
The don said the increasing adoption of AI made it imperative for lawyers, arbitrators, arbitral institutions and legislators to acquire the skills required to operate effectively in a digital legal environment.
She also highlighted the need for audit and supervision mechanisms to monitor AI-driven processes and detect bias, errors and other risks.
“Nations like Nigeria will be expected to put in place complementary laws that will incorporate the guiding principles of Artificial Intelligence such as the need for appropriate human oversight and responsibility; Transparency; and Confidentiality,” she said.
Oluwabiyi noted that Nigeria had already taken some steps through the Nigerian Data Protection Act 2023 and the Nigerian Bar Association’s 2024 Guidelines for the Use of Artificial Intelligence in the Nigerian Legal Profession.
She, however, said further reforms were required because existing measures did not sufficiently address the use of AI in arbitration.
The professor also pointed out that Nigeria’s Arbitration and Mediation Act 2023 recognised electronic communications in arbitration, but argued that clearer regulatory measures were needed to support the effective integration of AI.
She recommended that UNCITRAL and the IBA build on their existing international frameworks to develop rules specifically addressing AI in arbitration.
“The law is a living thing, it grows, it moves, and it must adjust to changing realities,” she quoted late Justice Niki Tobi as saying.
She added, “Therefore International Commercial Arbitration must be in tune with current realities in the digital age (AI) and also the law is expected to lead in the aspect of effective regulation.”
The inaugural lecturer also examined the possibility of AI-powered machines serving as arbitrators, noting that the laws of some jurisdictions expressly require arbitrators to be human, while others do not clearly contain such a requirement.
She said the legal uncertainty reinforced the need for international regulation capable of addressing the emerging possibility of machine-assisted or machine-led adjudication.
The professor said the ultimate goal should not be to prevent technological advancement but to ensure that innovation operates within the principles of justice and due process.
“AI should be deployed in tandem with human arbitrators,” she said, stressing that the final decision in arbitral proceedings should remain the responsibility of human arbitrators.
Oluwabiyi, who joined OAU in 2006 as a Lecturer II and became a professor in 2018, has 55 academic publications and has attended 77 conferences and workshops.
She has supervised more than 160 undergraduate law projects, over 60 master’s dissertations, three M.Phil theses and two PhD theses.
She was the first female Head of OAU’s Department of International Law, serving between 2016 and 2019 and again between 2021 and 2022. She also served as Dean, Faculty of Law, University of Ilesa, between 2025 and 2026.
She is a Fellow of the Nigerian Institute of Chartered Arbitrators, the Nigerian Institute of Chartered Mediators and Conciliators and the Institute of Management Consultants.
Her academic and professional recognitions include the OAU Distinguished Academics Award, the Nigerian Institute of Chartered Arbitrators’ Outstanding Performance Award and Justice Kayode Eso’s Prize, as well as the University of Ilesa Faculty-Based Research Award in 2026.
In her conclusion, Oluwabiyi said the responsible integration of AI could strengthen international arbitration if supported by adequate legal safeguards.
She said the technology had already become “an indispensable tool in international arbitration, driving greater speed, efficiency, and analytical precision in case management, evidence review, and decision support.”
The don expressed optimism that OAU, which is marking its 65th anniversary, would benefit from the emerging field, particularly with the establishment of the Otunba Famuyibo Dispute Resolution Center and the Ahmed Adeniyi Raji Clinical Legal Education Center.
She pledged to contribute her expertise to the university’s development of AI-driven dispute resolution.
'
'Do you want to share a story with us? Do you want to advertise with us? Do you need publicity for a product, service, or event? Contact us on WhatsApp +2348183319097 Email: platformtimes@gmail.com
We are committed to impactful investigative journalism for human interest and social justice. Your donation will help us tell more stories. Kindly donate any amount HERE
