Nigeria Needs Legal Framework for AI-driven Dispute Resolution, Says Don

Nigeria needs a comprehensive legal framework to regulate Online Dispute Resolution (ODR) and the growing application of artificial intelligence (AI) in arbitration and mediation, Adjunct Professor of Arbitration and Law at the University of Ibadan, Tayo Bello has said.

According to him, the increasing integration of technology into dispute resolution had created fresh legal, ethical and institutional challenges that required urgent attention from policymakers and legal practitioners.

Bello in a paper titled “The Paths of Alternative Dispute Resolution and Information Technology: What Is More, and What Is Less?” delivered at Redeemer’s University, argued that although technology had the potential to improve the speed, accessibility and affordability of dispute resolution, its adoption must be supported by adequate safeguards to protect confidentiality, procedural fairness, party autonomy and access to justice.

He noted Nigeria should develop a coherent framework specifically addressing Online Dispute Resolution, with minimum standards covering security, confidentiality, authentication, accessibility, procedural fairness, platform governance, electronic settlements and enforcement.

“Such a framework should establish minimum standards for security, confidentiality, authentication, accessibility, procedural fairness, platform governance, electronic settlement and enforcement,” he said.

Bello furthered that technological developments had fundamentally transformed traditional Alternative Dispute Resolution (ADR), which includes negotiation, mediation, conciliation and arbitration, by introducing virtual hearings, electronic evidence, digital case management and AI assisted legal processes.

He explained that AI could assist legal practitioners and arbitrators in reviewing documents, conducting legal research, summarising cases, identifying relevant authorities, organising evidence and analysing possible settlement options.

However, he cautioned that the benefits of technological adoption could be undermined by algorithmic bias, inaccurate information, cybersecurity vulnerabilities, privacy breaches and the possibility of excessive dependence on automated systems.

He stressed that the use of AI in dispute resolution must be guided by clear governance policies, including provisions for human oversight, transparency, confidentiality, verification, disclosure and responsibility for errors.

“Where AI is used in ADR, important decisions should remain subject to meaningful human review,” he stated. The professor further warned that AI systems could generate fabricated legal authorities, inaccurate quotations, incorrect legislation and false factual statements, potentially affecting submissions, evidence and procedural decisions in dispute resolution.

He maintained that technological efficiency should not be allowed to compromise the fundamental principles upon which arbitration and mediation operate. According to him, “AI may assist the Arbitrator, but the Arbitrator remains responsible for the Award.”

Bello also identified cybersecurity and data protection as major concerns arising from the increasing use of digital platforms in dispute resolution, noting that confidential arbitration documents uploaded into external AI systems could be exposed to unauthorised access or used for purposes beyond those intended by the parties.

He said Nigeria’s Data Protection Act 2023 provided an important statutory framework for personal data protection, adding that AI assisted ADR systems must be designed around data protection requirements.