Leveraging Technology for More Cost-Effective Arbitration of Cross-Border Commercial Disputes: An Introduction to the Range of Possibilities with a Focus on MSMEs

Abstract

Online dispute resolution (ODR) is a hot topic when it comes to high-volume, low-value disputes. The utility is obvious where the nature of certain disputes is often largely repetitive, and the cost of individualized resolution is often prohibitive when compared to transactional values. The value proposition in this sort of ODR is often achieved through a “layered” or “sequenced” system in which the majority of disputes are resolved by algorithm, thereby reducing the overall average cost to a level commensurate with the value of the transaction from which the dispute has arisen. Thus, technology is used both in connecting the various participants online, as well as the process of resolving many of the actual disputes, and the result is a more cost-effective dispute resolution mechanism.

Perhaps less obvious, but of equal importance, a variety of technology uses may be of significant value in resolving business-to-business (B2B) disputes. While these B2B disputes are far less likely to fall into the high-volume, low-value category more commonly addressed by ODR, many will involve relatively modest amounts in dispute, such that a more cost-effective mechanism for resolving those disputes may be particularly valuable. This essay focuses on the use of technology in arbitration of B2B disputes, especially disputes involving “micro, small, or medium-sized enterprises” (MSMEs), to deliver a more cost effective final award.

Keywords: Online dispute resolution, international arbitration, technology, artificial intelligence, commercial disputes, business-to-business, B2B, MSME