The combination of technology and alternative dispute resolution (ADR) procedures is known as online dispute resolution (ODR), which provides creative ways to settle conflicts quickly and affordably. As an extension of ADR, ODR uses digital platforms, AI, and secure communication technologies to mediate, negotiate, and arbitrate disputes ranging from multinational business issues to consumer disputes.

Its inception dates back to the late 1990s, when eBay and other e-commerce behemoths invented online dispute resolution processes to quickly address consumer complaints. Since then, ODR has spread to other industries, handling conflicts in cross-border commerce, intellectual property, finance, and healthcare.

ODR has enormous potential to democratize dispute resolution by increasing its scalability and inclusivity. The way disputes are resolved might be completely changed by emerging trends like machine learning-driven settlement projections and virtual reality-mediated discussions.

The purpose of this paper is to examine how ODR has revolutionized conventional legal systems, highlighting how it has increased access to justice, decreased backlogs in litigation, and promoted international cooperation. It looks at how developments in data analytics, blockchain technology, and artificial intelligence are raising the legitimacy and openness of ODR procedures. It also assesses the moral and legal issues related to digital literacy, award enforcement, and secrecy, which continue to be major obstacles to its broad use.