The new “Code” of conduct in resolving disputes: UAE’s AI vision and advancing towards AI-driven dispute resolution systems

6 min 28 sec March 24, 2026 (Edited)

Written by

Naief Yahia

Partner, Head of Dispute Resolution

n.yahia@tamimi.com View LinkedIn Profile

Shadha Zawawi

Senior Associate

s.zawawi@tamimi.com View LinkedIn Profile

Dina Assar

D.Assar@tamimi.com View LinkedIn Profile

Introduction

Artificial intelligence (AI), like every other sector it touches, is transforming dispute resolution worldwide. It is no longer just an add-on; it is becoming part of the fabric of dispute resolution itself. Lawyers and parties must move beyond simply digitizing old procedures and be fully prepared to adopt and make use of AI’s growing capabilities.

In the UAE, as in many jurisdictions around the world, this shift from “online” to “intelligent” systems opens exciting new possibilities, while also raising complex questions about fairness, transparency, and accountability in the resolution of disputes.

AI in Dispute Resolution: Transforming the Process

Across global arbitration and litigation landscapes, AI is revolutionizing how disputes are handled. AI-driven tools assist with document review and discovery, quickly analyze voluminous datasets, and even draft documents, freeing up time to focus on strategy. Sophisticated AI tools are increasingly improving to act as “thinking partners” by combining predictive analysis, generative work, and translation features. As these capabilities continue to evolve and integrate into dispute resolution processes, discussions are now moving beyond support tools toward decision-making applications.

An AI arbitrator or hybrid arbitrator is emerging; the American Arbitration Association (AAA) is set to launch an AI-native arbitrator using a hybrid model with human arbitrators reviewing and validating outcomes.[1]

AI is also making headway in intelligent case management systems and proposing outcomes in other alternative dispute resolution mechanisms. In Dubai, the DIFC recently launched its Mediation Centre Service Centre this year, which offers in-person and online mediation via AI-enabled case management. Arbitral institutions in the UAE have also integrated AI through partnerships. For instance, in June 2025, DIAC, the leading arbitral institute in the UAE, announced a partnership with Jus Mundi to assist case management through an AI-powered system.

UAE’s Adaptive Legislative Framework: readiness for AI-driven Dispute Resolution?

The UAE’s legal landscape has generally been responsive to global technological developments. While currently there is no specific legislation on the use of AI in legal proceedings or dispute resolution, the overall legal framework of UAE provides a conducive foundation for AI’s integration in dispute resolution processes.

The UAE Arbitration Law (Federal Law No. 6 of 2018) reflects this forward-looking approach, which explicitly allows for electronic communications, digital document exchange, and virtual hearings, giving arbitral tribunals flexibility to adopt modern technologies. Similarly, recent changes to UAE Civil Procedures Law (Federal Law No. 42 of 2022) have redefined court practice through electronic filing and remote hearings. Coinciding with this are the updates to the UAE’s Evidence Law (Federal Decree Law No. 35 of 2022) which dedicates an entire section to electronic evidence, codifying the admissibility and evidential weight of digital data. These changes are complemented by other legislation, such as the Federal Decree Law No. 46 of 2021 on Electronic Transactions and Trust Services and Federal Decree Law No. 14 of 2023 concerning Modern Technology-Based Trade (E-Commerce Law), which regulate electronic signatures for trust services and commercial transactions respectively.

The DIFC and ADGM have enacted their own electronic transactions frameworks; the DIFC Electronic Transactions Law No. 2 of 2017 and the ADGM Electronic Transactions Regulations 2020, each recognizing the validity and admissibility of electronic signatures and records.

These steps show that the UAE’s legal system is already well-positioned for the integration of modern technologies in disputes, paving way for adoption of AI in judicial processes.

Recent AI initiatives in the UAE and the future of dispute resolution

Recently, there has been a series of policy initiatives in respect of AI.  Although aimed at broader integration across various economic sectors, and forming part of UAE Centennial 2071, which seeks to position UAE at the forefront of technological advancement, these initiatives provide an enabling road map for AI integration into the UAE’s legal system, including dispute resolution processes.

The UAE AI Strategy 2031, launched in 2017 and adopted by the UAE Cabinet in 2019, mandates embedding AI across all sectors while ensuring strong governance, ethics, and transparency. Oversight rests with the Minister of State for Artificial Intelligence through coordination with the Emirates Council for Artificial Intelligence and Digital Transactions. The strategy outlines eight core objectives targeting reputation, competitiveness, an innovation ecosystem, AI-enabled public services, talent, research–industry links, data infrastructure, and robust regulation.

In July 2024, in alignment with its AI Strategy, the UAE launched the Charter for the Development and Use of AI. The Charter sets out guiding principles that; (i) promote data privacy, fairness, inclusivity, transparency; (ii) safeguard individual rights and prioritise human well-being; (iii) address algorithmic bias; and (iv) strengthen governance and accountability, all while adhering to social values and to international and local commitments. At the heart of the Charter is the recognition of the “human-in-the-loop” approach that requires ongoing human oversight, security, and commitment in AI, to promote responsible use. These principles align AI innovation with ethical, social, and legal standards that enhance public trust.

More recently, in April 2025, the UAE Cabinet approved the establishment of a Regulatory Intelligence Office with an AI-powered system.[2] This policy initiative aims for a smart legislative ecosystem backed by AI solutions and to reduce the legislative process and drafting by up to 70%.

Specific to the use of AI in legal proceedings, the DIFC published the Practical Guidance Note No. 2 of 2023 on the use of AI models in proceedings before the DIFC Courts. This Guidance Note sets out a comprehensive framework for using AI-generated content in DIFC court proceedings. It addresses core principles of transparency, accuracy and reliability, professional and legal obligations, and avoiding over-reliance on AI. It sets out best practices to assist parties when using AI, covering aspects of protecting client confidentiality, integrity of witness testimony, and early disclosure of use of (or intention to use) AI-generated content during the proceedings.

The integration of smart technology extends to procedural and administrative aspects of dispute resolution, with UAE courts aiming to use the latest technology and end-to-end digital services to streamline court procedures. Together these initiatives provide not just the legal framework for use of AI in disputes but also the infrastructure to support emerging technologies. They have also propelled initiatives of specialised courts for technology disputes. The DIFC’s Digital Economy Court is a first of its kind specialized division in the DIFC for resolving complex national and cross‑border technology related disputes, including those related to current and emerging technologies such as AI, big data, blockchain, fintech, and cloud services. The Digital Economy Court complements Dubai’s wider court digitalization by offering specialist judicial expertise and alignment with ongoing policy and legislative developments on the use of modern technologies in disputes.

While these developments are encouraging, the legal system’s response to rapid technological advancement is still unfolding, and concerns from use of AI continue to evolve as we start to realise its capabilities.  Recent instances have revealed both distrust and misuse of AI in court settings. Decisions in both the United States (Mata v. Avianca, Inc. (S.D.N.Y., June 22, 2023)) and the United Kingdom (Ayinde v London Borough of Haringey and also Al-Haroun v Qatar National Bank [2025] EWHC 1383) have highlighted the serious professional and ethical risks of relying on unverified AI outputs, including fabricated case law that did not exist. Other examples include LaPaglia v. Valve in the United States, where the claimant challenged the arbitrator’s use of AI to write the award on the ground that it betrayed the parties’ expectations of a well-reasoned decision by a human arbitrator. Moreover, the use of “AI-lawyers” has also made its way into the court. These cases underscore the need for legal professionals to exercise extreme caution when using AI. They send a clear message of responsible use of AI. Of crucial importance is establishing clear guardrails and robust audit trails to address various issues arising from the use of AI, including confidentiality, data privacy, and misuse of AI, and to ensure human oversight through comprehensive legislative devices.