As the legal landscape continues to evolve, 2024 is poised to be a transformative year for international arbitration practitioners delving into the realm of artificial intelligence (AI). While the buzz around AI, exemplified by the phenomenon of ChatGPT in 2022, has subdued, experts anticipate a resurgence of interest in the coming year.

Wiley Rein LLP partner, Joshua B. Simmons, predicts a shift from mere curiosity to substantial implementation of AI among international arbitration lawyers. Notably, the White House's October executive order emphasizing the "safe, secure, and trustworthy development and use" of AI sets the stage for similar initiatives within the arbitration community. Simmons underscores the need for clarity on the appropriate use of AI, drawing parallels to the executive order's focus on identifying AI-generated content.

While AI promises efficiency, Simmons asserts that the core essence of international arbitration, relying on sound judgment and high-quality advocacy, remains irreplaceable. As AI becomes more practically integrated, the field will witness a nuanced balance between technological advancement and the enduring qualities that define arbitration.

3 International Arbitration Trends In 2024: Emerging Industries

The year 2023 witnessed the ascendancy of artificial intelligence and the green energy transition, foreshadowing their impact on dispute resolution in 2024. In particular, the construction, infrastructure, and energy sectors are poised to witness a surge in novel disputes, marking a departure from conventional arbitration challenges.

Orrick Herrington & Sutcliffe LLP partners Rena L. Scott and Vanessa Liborio anticipate a paradigm shift in the adjudication of construction disputes. With ambitious projects like Saudi Arabia's NEOM region, featuring "smart cities" and renewable energy-driven industrial hubs, the arbitration landscape is evolving. These projects, while groundbreaking, introduce complexities that demand early involvement of experts to navigate technical intricacies.

Moreover, the boom in demand for critical minerals in the green energy transition, exemplified by the lithium industry, presents new challenges. Disputes arising from heavily constrained supply chains for raw materials used in electric vehicles are expected to escalate in 2024. The drop in lithium prices and disruptions in supply contracts may trigger a wave of commercial decisions and contract disputes in the electric vehicle space.

Unraveling the Aftermath: Fallout From Russia's Invasion

As the two-year mark of Russia's invasion of Ukraine approaches in February, the aftermath of this geopolitical upheaval is expected to manifest in the international arbitration arena in 2024. The exodus of businesses from Russia following the invasion is now poised to lead to a wave of formal disputes.

Skadden Arps Slate Meagher & Flom LLP counsel Sharmistha Chakrabarti reveals that, after helping companies navigate the legal and practical challenges of leaving Russia, the focus is now shifting to formal dispute resolution. Investment treaty claims against Russia, previously scarce, are anticipated to rise, with examples like Carlsberg's threat of a claim after the seizure of its stake in Baltika. Energoatom's $3 billion claim against Russia over the Zaporizhzhia nuclear power plant expropriation adds to the growing list of impending disputes.

While the road ahead promises legal battles, Chakrabarti notes that businesses, shut down abruptly in 2023, are turning to arbitration as a means of recourse. The complexity and protracted nature of investment treaty claims against Russia are acknowledged, emphasizing that the fallout from the invasion will shape the arbitration landscape for years to come.