Context: Construction projects move quickly. Payment disputes, order disputes, and scope issues often need a prompt interim decision before they damage the project schedule or increase claim costs. That is the purpose of an Initial Decision Maker. The IDM provides an early project-level decision so the parties can continue performance while preserving their right to later dispute resolution.
AAA’s new AI Arbitrator process offers a potential fit for this role in appropriate document-based construction disputes. AAA describes the process as AI-assisted, not AI-decided. The AI tool helps summarize submissions, identify issues, organize evidence, prepare analysis and draft a proposed award. A human AAA arbitrator then reviews, revises, finalizes and issues the decision. AAA has also stated that the process was initially made available for two-party, documents-only construction cases.
Using AAA’s AI Arbitrator process as the IDM may help parties obtain faster initial decisions on routine project disputes while maintaining human neutral oversight. The goal is not to replace mediation, arbitration or litigation. The goal is to create a faster first decision that keeps the project moving.
Sample Provision: The Parties designate the American Arbitration Association’s AI Arbitrator process as the Initial Decision Maker (“IDM”) for Claims arising out of or relating to the Contract, if available for the Claim at issue.
The AAA AI Arbitrator process shall mean AAA’s AI-assisted dispute resolution process in which artificial intelligence assists with document review, issue identification, dispute summarization, analysis, and proposed decision preparation, subject to review and issuance by a human AAA arbitrator.
Either Party may submit a Claim to the IDM. The Parties shall submit position statements and supporting documents in accordance with AAA’s AI Arbitrator procedures.
The IDM decision shall be binding on an interim basis unless modified by settlement, mediation, arbitration, litigation, or other final dispute resolution procedure allowed under the Contract. Pending final resolution, the Parties shall continue performance. Owner shall pay undisputed amounts.
A Party may object to the IDM decision by providing written notice within fourteen days after receipt. If timely notice is given, the Claim may proceed under the Contract’s dispute resolution procedures. If no timely notice is given, the IDM decision shall become final and binding as to the Claim decided.
If AAA’s AI Arbitrator process is unavailable, declined by AAA, or unsuitable for the Claim, the IDM shall be a single neutral appointed by AAA under its applicable construction dispute procedures.
