"Technology is best when it brings people together" - Matt Mullenweg

Cross-cultural interactions have become a norm in society today. Transnational transactions involving companies, governments, and individuals often bring together diverse legal frameworks and cultures. This diverse interaction gives rise to conflicts that call for impartial and effective dispute resolution procedures. The International Commercial Arbitration then comes to rescue. 

Language barriers and differing legal traditions are two of the particular difficulties that arise from cultural variations in international business arbitration. However, technology driven tools like Artificial Intelligence come into picture. These tools have now started to play a significant role in bridging the cultural gaps and fostering mutual understanding in the process of dispute resolution. 

Challenges of Cross-Cultural Arbitration

Before delving onto the importance of AI in arbitration proceedings, we must understand why it is crucial to manage disputes arising amongst diverse cultural backgrounds. These challenges stem from the inherent differences in legal norms, cultural norms, and communication styles among people of different backgrounds.

John Barkai explores the ideas of low-context culture and high-context culture to examine cultural diversity in the process of arbitration. According to him, low-context cultures usually rely on verbal communication, which is straightforward and explicit. It involves elaborate discussions, and even contentious topics are discussed freely. On the other hand, communication is more subtle and indirect in high-context cultures. These cultures value symbolism, prestige, and face above all else, and they frequently avoid direct confrontation, therefore the essential concerns may either be implied or not spoken at all. 

The arbitration procedure may be influenced by cultural norms. There are values that receive recognition in some communities for preserving peace and averting conflict. As a result, it could be seen as failure in other cultures for parties to be unwilling to publicly disagree with the opposing side or to take strong stances. Cultural differences in ideas of formalities, hierarchy, and respect can also have an enormous influence on how the parties, lawyers, and arbitrators interact. 

Implicit prejudice and cultural stereotyping may also be evident throughout the arbitration process. Without holding preconceived notions about other cultures, arbitrators and parties may perceive and render conclusions differently. 

Language barriers represent yet another significant issue. While communication forms the cornerstone of any legal proceeding, it may be more difficult to understand agreements, evidence, and legal contentions if there are no specialized translations accessible in other languages posing another challenge to mediators in cross-cultural disputes. 

AI in Arbitration

Currently, efforts are being made to enhance the efficiency, speed, and ease of use of arbitration for all parties. The advent of online arbitration is one of the most recent developments in this sector, having been widely adopted by eminent arbitral institutions across the globe. 

Given the history, artificial intelligence has developed in two waves. The first makes reference to the 1980s and is based on logic programming and rule-based systems. The latter has surfaced recently and it concentrates on supervised machine learning in conjunction with deep neural networks. Thus, today's technology has the potential to assist with these issues and improve the efficiency of cross-cultural arbitration since machine learning and logic allows one to arrive at accurate conclusions having regard to the enormous data pertaining to the precedents. This allows arbitrators to access proficient translation capabilities, cultural and predictive analytics. 

With the use of technology, one can examine enormous volumes of data from prior arbitration cases thereby, lowering prejudices and improving the uniformity and impartiality of the arbitration proceedings.

The importance of these tools have also been recognized by numerous international centers for arbitration and mediation. Silicon Valley Arbitration and Mediation Center's (SVAMC) has highlighted the importance of AI through the publication of "Guidelines on the Use of Artificial Intelligence in Arbitration". These recommendations acknowledge the possible advantages as well as the challenges associated with employing AI in arbitration matters. 

The Stockholm Chamber of Commerce (SCC), which has implemented creative ways to expedite the arbitration procedures through digital technology, is another example of an online platform. In order to address the cybersecurity and data protection concerns, access to the platform is restricted to those involved in the current proceedings. To further assure greater security, all of the data contained therein is encrypted using military-grade encryption.

Cultural Sensitivity and Technology

The ability to identify, honor, and value the variations in social customs, beliefs, and practices is a necessary component of cultural sensitivity. It is about realizing that every culture interacts and views the world in a different way. Cultural sensitivity is essential for developing trust, preventing misunderstandings, and promoting cooperation in international commerce, diplomacy, and even common interactions. 

The concept of cultural diversity in international arbitration is opposed by some arbitrators who claim that cultural differences only apply to legal systems and technical expertise. However, research reveals that culture influences not just business conventions but also people's expectations, opinions, perspective, and interpretation of the law.

Advanced tools used by present day technology may also assist in interpreting any text or legal document in regards to the respective cultural contexts. Global connectivity has increased exponentially with the advent of social media and digital platforms. These forums enable intercultural communication and allow people from diverse backgrounds to share their viewpoints and experiences. 

Challenges and considerations 
AI offers significant advantages in arbitration, but what about the obstacles standing in the way?
Despite the numerous advantages AI holds in order to deal with culturally sensitive disputes, it also poses certain challenges. Since any legal proceeding usually deals with hefty records and enormous data, there is possibility that there could be generalization of information and regardless of the exceptional situation at hand, results may be based on the previous precedents that may not always be relevant.

Developing an AI arbitrator based on a wider variety of forecasts that more closely align with reality may be advantageous, on the one hand. However, such a wide range of cases and disagreements might also drastically reduce the size of the relevant sample, which would lower the total number of observations.

Further, the reliability of digital evidence is another problem with digital arbitration. It is crucial to ensure that emails, electronic records, and other forms of digital evidence were not tampered with or modified in order to maintain the arbitration process' credibility and dependability. 

The IBA rules on international arbitration also contemplate the management in electronic records for evidential purposes. In India's context, the Information Technology Act, 2000 governs the matters pertaining to digital security. However, there exists an inherent need to have specific regulations in regards to digital arbitration. 

Way Ahead
International arbitration has already seen a great deal of digitalization. Therefore, it is worthwhile to explore cutting-edge technologies and diverse digitalization strategies in the context of international dispute resolution. For example, the netcase system provided by the International Chamber for Commerce (ICC), allows parties to participate and observe online arbitration proceedings. 

It should be noted that the employment of new technologies is not expressly forbidden by the current legislative framework for international arbitration. This means that settlements control both the choice for dispute resolution and the processes used to handle the arbitration. Thus, there lies a huge scope for the integration of AI into arbitration proceedings especially when it comes to drawing settlements amongst diverse cultural communities. It can be a useful tool in our quest to manage the confluence of culture and technology, promoting a more harmonious and efficient setting for international arbitration.