Chief Justice of the Supreme Court Hon. Alexander Gesmundo underscored the transformative potential of artificial intelligence (AI) in improving both litigation and alternative dispute resolution (ADR), including arbitration, during his keynote address at the 3rd Arbitration Day on Friday, 21 February in Bonifacio Global City.

The event, organized by the International Chamber of Commerce Philippines (ICCP) and ICC Dispute Resolution Services, gathered government legal representatives, in-house counsel from top corporations, and leading law firms to explore new developments in international arbitration.

“Far from merely complimenting the standard court structure, arbitration has become an essential mechanism for resolving disputes, offering faster, more flexible, and often more cost-effective solutions than traditional court litigation,” Gesmundo said.

He went on to highlight how emerging technologies, particularly AI, play a key role in shaping the future of arbitration: “The integration of modern technologies, including artificial intelligence, only amplifies arbitration’s potential to deliver faster, more efficient solutions. As we embrace this evolving landscape, not only will arbitration transform how we resolve conflicts, it will also shape the future of justice in the Philippines.”

Gesmundo explained that AI could make arbitration processes more efficient, transparent, and data-driven by analyzing vast stores of historical case data. However, he also cautioned about potential drawbacks:
“However, despite the promise AI holds for arbitration, its implementation raises important concerns. First and foremost, AI often requires access to sensitive data.”

He emphasized the importance of adhering to the Data Privacy Act of 2012 when handling any information used by AI-powered tools and noted the potential lack of transparency in how AI algorithms operate.

Gesmundo stressed that human arbiters are an indispensable element in resolving disputes, using their critical thinking and nuanced judgment to process information AI gives them.

Finally, the Chief Justice revealed that the Supreme Court is considering updates to the rules governing arbitration and dispute resolution to keep pace with technological developments and evolving legal practices in the Philippines.

ICCP Chairperson George T. Barcelon delivered welcome remarks.

"As we navigate today's discussion, we are fortunate to have a distinguished group of experts and practitioners with us, who will delve into the concepts, safety nets, and critical developments in the field of international arbitration," Barcelon said.

The day’s program includes four sessions on various international arbitration topics, featuring case study of an ICC arbitral award and a mock court demonstration. The Philippine Chamber of Commerce and Industry, Meralco, DivinaLaw, and Araneta City were among the event partners.

ICC's broader stance on AI

As an organizer of the 3rd Arbitration Day, the ICC has emphasized that businesses play a vital part in designing, deploying, and regulating emerging technologies. By actively participating in global policy discussions, including this conference, the ICC seeks to promote ethical, safe, and beneficial deployment of AI.

In particular, the ICC has stated in its "Overarching narrative on artificial intelligence" that it focuses on key policy areas such as data governance, safety and security, inclusive access, and countering disinformation.

Through best practices and multistakeholder initiatives, the ICC works to harmonize standards across jurisdictions, preventing fragmented regulatory environments and promoting a unified vision for responsible AI adoption.

This global push on the part of the business sector for accountability and transparency echoes Gesmundo’s call to harness AI’s potential while preserving critical safeguards, especially human oversight, in the justice system.