AI a ‘Useful Servant, Dangerous Master’, Says Justice Prashant Kumar Mishra

Justice Prashant Kumar Mishra, Judge, Supreme Court of India on Saturday underscored that the future of arbitration lies not in choosing between human judgment and artificial intelligence, but in carefully calibrating a partnership between the two, as he addressed the 5th edition of the India Council for Arbitration conference on “Arbitration in the Era of Globalization.”

Speaking on the theme of AI and legal technology, the Supreme Court judge traced arbitration’s journey from community-based dispute resolution mechanisms and panchayati traditions to the statutory framework under the Arbitration and Conciliation Act, 1996, noting that the discipline now stands at a “critical juncture” shaped by algorithms, data, and digital intelligence.

Invoking Justice P.N. Bhagwati’s transformative vision of law adapting to social change, Justice Mishra suggested that arbitration must evolve or risk irrelevance in a rapidly digitising legal ecosystem.

At the heart of his address was a pragmatic endorsement of artificial intelligence as a necessary tool rather than a futuristic indulgence. AI-driven systems, he observed, are already streamlining arbitration by enabling faster document review, predictive analysis based on past awards, and procedural automation, thereby reducing costs and delays that often plague traditional dispute resolution. Online Dispute Resolution (ODR), he added, has emerged as a natural extension of this shift, offering a flexible, remote, and cost-effective alternative, particularly suited to cross-border disputes.

The judiciary, he stressed, occupies a “multifaceted” role in this transition. While courts must safeguard constitutional values and procedural fairness, they must simultaneously encourage innovation that enhances access to justice.

Referring to judicial recognition of electronic arbitration agreements, Justice Mishra pointed to the growing legal acceptance of digital processes in dispute resolution, signalling a gradual but steady alignment of law with technological realities.

However, the address was equally a cautionary note against uncritical adoption of technology. Justice Mishra flagged serious concerns around data privacy and confidentiality, warning that arbitration often involving sensitive commercial information could be exposed to risks if AI systems are not governed by stringent safeguards. He also highlighted the limitations of AI in replicating human reasoning, emphasising that fairness, equity, and ethical discretion remain inherently human functions that machines cannot replicate.

The opacity of algorithmic decision-making, or the “lack of explainability,” was identified as another challenge that could erode trust in arbitral processes. Coupled with this is the risk of unequal access to advanced technological tools, potentially skewing proceedings in favour of well-resourced parties. Concerns over cybersecurity and the rise of deepfakes further complicate the evidentiary landscape, raising fundamental questions about authenticity and reliability in digital arbitration.

Justice Mishra’s remarks also engaged with policy responses, referencing the guiding principles articulated by NITI Aayog for responsible AI use, including transparency, accountability, and protection of human values. These principles, he suggested, could form the normative backbone for integrating AI into arbitration without compromising its integrity.

In a telling anecdote, he recalled instances where AI-generated legal research produced fictitious case law, underscoring that technological errors ultimately reflect human oversight. The lesson, he implied, is not to reject AI, but to approach it with vigilance and responsibility.

Framing AI as a “useful servant but a dangerous master,” Justice Mishra concluded that the legitimacy of arbitration in a digital age will depend on maintaining human control over technological tools. The task ahead, he said, is to ensure that innovation strengthens rather than destabilises the system, preserving trust, fairness, and transparency in the arbitral process.

Event Name: 5th Edition of ICA International Conference on “Arbitration in the Era of Globalization”

Event Date: April 11, 2026