Algorithmic Neutrality: Reimagining Arbitrator Appointments In India Through Artificial Intelligence To Combat Moral Hazard

Algorithmic Neutrality: Reimagining Arbitrator Appointments in India Through Artificial Intelligence to Combat Moral Hazard

A. Introduction

Arbitration, as a preferred mode of dispute resolution, is grounded in the principles of party autonomy, efficiency, and finality. It offers a private, flexible, and expert-led alternative to traditional litigation. However, the credibility of arbitration ultimately hinges on one critical foundation: the impartiality and independence of the arbitrator. Any compromise, actual or perceived, on this front erodes trust in the process and undermines the legitimacy of the final award. A major challenge to this impartiality is the phenomenon of “moral hazard,” a concept emphasized by Professor Jan Paulsson, which highlights the risk that a unilaterally appointed arbitrator may, consciously or subconsciously, favor the party that nominated them. This structural predisposition threatens both party confidence and enforceability, even in the absence of