Algorithmic Fairness and Ethical Challenges in AI-Powered Dispute Resolution: A Framework for ADR in Construction Disputes

Amila Nayana Kanthi Kankanam Gamage

doi:10.58915/aset.v4i2.2095

Authors

Amila Nayana Kanthi Kankanam Gamage LIGS University

DOI:

https://doi.org/10.58915/aset.v4i2.2095

Keywords:

AI in ADR, Bias in algorithms, Construction disputes, Data privacy, Ethical AI

Abstract

Artificial Intelligence (AI) is increasingly explored for its role in Alternative Dispute Resolution (ADR), particularly in construction disputes, where complex contractual issues demand both automation and human expertise. While AI currently supports tasks like data analysis, scheduling, and document review, its role in core dispute resolution remains limited. This study investigates algorithmic fairness and ethical challenges in AI-driven ADR, addressing concerns such as bias, data privacy, transparency, and the diminishing role of human judgment. Although AI enhances efficiency and cost-effectiveness, excessive automation may undermine fairness, accountability, and procedural integrity. To address these risks, this research proposes an ethical safeguard framework for responsible AI adoption in construction ADR. The framework focuses on bias mitigation, data security, explainability, and human oversight, ensuring AI complements rather than replaces human decision-making. A qualitative review of literature (2021–2025) informs its development, offering practical guidance for ADR practitioners, policymakers, and AI developers. The study advocates for regulatory transparency and ethical AI standards to build trust in AI-assisted ADR. Future research should assess the impact of explainable AI and stakeholder perspectives to refine ethical safeguards further.

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