JAMS, which provides alternative dispute resolution (ADR) services worldwide, has created new rules governing the disputes that fall within its remit involving artificial intelligence. The rules address the rise in usage and development of AI systems and smart contracts.
One of the key clauses to look at is 16 (see below), covering procedures and exchange of information. JAMS says, in effect, that for AI systems in dispute, the “hardware, software, models and training data” shall be made available to an expert or experts in a secured environment. The expert(s) will be mutually agreed on or chosen by the arbitrator.
The new rules more generally refine and clarify procedures for cases involving AI systems. This includes proper filing, service of the request for arbitration, commencement of the arbitration and service of documents throughout the arbitration. The rules expand the scope of the rules outlined for domestic arbitrations that involve new technology.
The rules explicitly define “artificial intelligence” as “a machine-based system capable of completing tasks that would otherwise require cognition.” JAMS, which is based in the US, says that this definition and the rules create a framework to support dispute resolution at a time when the evolving regulatory and governance environment for AI will have a significant impact on the legal industry.
Kimberly Taylor, JAMS’ president, said:
“This pioneering initiative marks JAMS as the first in the ADR industry to establish a comprehensive legal framework tailored to the complexities of AI. We encourage all stakeholders to embrace these new rules, as they are essential in navigating the complicated landscape of AI disputes with clarity and foresight, to provide resolutions that are both effective and attuned to the latest technological developments.”
There has been growing litigation around the use of generative AI, particularly allegations of intellectual property violations. JAMS handles multiparty, complex cases in virtually all areas of law. However the law in this area is developing and law firms advise that issues such as liability and the burden of proof will be taken on a case by case basis.
The JAMS Artificial Intelligence Disputes Clause and Rules can be found here.