AI and Predictive Analytics in ADR – A New Tool for Valuing Disputes

As artificial intelligence (AI) becomes more sophisticated and accessible, its influence on the legal profession—and particularly alternative dispute resolution (ADR)—is accelerating. One of the most promising applications of AI in this space is the use of predictive analytics to assist in case valuation during mediation or arbitration.

While AI will never replace the professional judgment and human understanding central to dispute resolution, it can serve as a powerful tool to help parties and their counsel enter negotiations with data-informed expectations.

What is Predictive Analytics in ADR?

Predictive analytics involves the use of algorithms to analyze vast datasets—including jury verdicts, settlement values, case durations, and judge/arbitrator behaviors—to forecast likely outcomes of legal disputes. When integrated into the ADR process, this data can support more realistic valuations and help break through impasse rooted in overly optimistic or uninformed expectations.

Platforms such as Premonition, Westlaw Edge, and Lex Machina already offer predictive tools based on real-world case data. Used ethically, these insights can guide mediators and arbitrators in helping parties better understand risk, evaluate legal positions, and consider resolution options grounded in precedent.

Benefits and Ethical Considerations

✅ Improved Transparency: Parties are better prepared to engage in good-faith negotiation.

✅ Data-Informed Strategy: Lawyers can align valuation with comparable outcomes.

✅ Ethical Use Is Key: Neutrals must ensure that AI tools are used to supplement—not replace—neutral judgment, and that any biases in data sources are acknowledged and mitigated.

As a mediator and arbitrator, I see predictive analytics not as a shortcut, but as a support system—a way to help parties approach the table with clarity, confidence, and context. In the right hands, AI-driven tools can enhance the resolution process and deliver outcomes that are better understood—and more widely accepted.