AI mediator settles UK debt case in under an hour, but human touch remains vital for complex disputes
An AI system settled a UK debt dispute in under an hour in 2019, but practitioners warn that human mediators are essential for complex cases involving emotions, reputation, and creative solutions.
A three-month legal dispute in the United Kingdom involving £2,000 (HK$21,200) was resolved in less than an hour in 2019 by “Smartsettle ONE,” an AI-driven mediation system. The system used algorithms to adjust both parties’ bidding expectations, marking what was described as the world’s first court case settled by a robot mediator, according to Nick Chan, director of the Asian-African Legal Consultative Organization Hong Kong Regional Arbitration Centre (AALCO-HKRAC).
Writing in a commentary, Chan said the milestone prompted questions about whether human mediators would eventually be replaced by AI. However, he argued that the 2019 case succeeded under highly specific and limited conditions, dealing solely with a simple debt involving a single monetary figure.
Chan noted that real-world disputes—such as those involving commercial partnerships, intellectual property, or sports-related conflicts—are far more complex and deeply intertwined with human relationships, reputation, and dignity. While AI excels at calculation, he said only humans truly understand communication. Disputes, he added, are often not just about money but about achieving closure and resolving emotional grievances, where a sincere apology or a compromise preserving dignity carries value beyond numbers.
Chan identified three major concerns with relying entirely on AI for mediation: a lack of flexibility for non-monetary terms, as AI struggles to structure creative solutions such as formal apologies or future business collaborations; algorithmic “black-box bias,” where historical data may inadvertently favor large corporations with deeper pockets, undermining procedural justice; and privacy and data security risks if highly sensitive and confidential business information is stored or leaked by an AI system.
At AALCO-HKRAC, Chan said the centre leverages technology through its Online Dispute Resolution (ODR) platform to handle paperwork, document organization, and scheduling, significantly reducing preparation time. However, he emphasized that the core of the centre’s approach lies in integrating the expertise of professional mediators. While technology enhances efficiency, human mediators with legal expertise, empathy, and strong communication skills steer critical negotiation moments, sensing emotional nuances and guiding parties toward resolving core grievances in a secure, confidential environment.
Chan said the centre promotes a “Mediation-First, Arbitration-Next” mechanism to provide a legally binding yet empathetic one-stop solution. He concluded that technology can clarify data, but only human professionalism and warmth can bring parties together to shake hands and make peace.