Why JAMS introduced AI Rules and launched its Technology Industry Group
Artificial intelligence (AI) is rapidly transforming how businesses operate, innovate and compete. As AI becomes embedded across industries and business functions—from software development and health care to financial services and employment decisions—new categories of legal disputes are arising. At the same time, technology-related disputes generally are becoming more complex, involving sensitive technical evidence, evolving regulatory frameworks and significant commercial stakes.
In response to these developments, JAMS has taken steps to help clients navigate the changing dispute resolution landscape, such as introducing the JAMS AI Disputes Clause and Rules (JAMS AI Rules) and launching the JAMS Technology Industry Group. Together, these initiatives reflect JAMS’ commitment to advancing alternative dispute resolution (ADR) alongside technological innovation.
Why AI Disputes Require a Different Approach
The JAMS AI Rules were developed specifically to address disputes involving AI systems. Traditional arbitration rules were not designed to accommodate many of the unique issues presented by AI, including the handling of massive datasets, proprietary algorithms, machine learning models, training data and other highly sensitive technical information. The new rules provide a framework tailored to these challenges while preserving the efficiency, flexibility and party autonomy that make arbitration an attractive dispute resolution option.
Among their key features, the AI Rules provide streamlined and proportional discovery, enhanced confidentiality protections, procedures for emergency relief and specialized protocols governing access to AI systems and training data. The rules also promote the appointment of arbitrators with appropriate technical knowledge and experience, helping parties avoid misunderstandings of complex evidence and improving confidence in the process. A companion AI Disputes Protective Order provides additional safeguards for proprietary information, trade secrets and confidential business materials that may be central to an AI-related dispute.
Responding to the Rise of AI Disputes
The introduction of these rules reflects JAMS’ long-standing commitment to anticipating emerging legal challenges. As AI adoption accelerates, JAMS expects disputes involving AI systems, software functionality, intellectual property, algorithmic decision-making and data governance to become more common. By establishing a dedicated procedural framework now, JAMS is helping clients prepare for the next generation of complex commercial disputes.
Meeting the Growing Demand for Technology-Focused ADR
The introduction of the JAMS Technology Industry Group represents a broader strategic response to the growing role of technology in modern dispute resolution. Since 2022, JAMS has experienced more than a 50% increase in business from cases involving technology-driven elements, including AI, cybersecurity and software. As these disputes become more frequent and sophisticated, clients will need access to neutrals who understand both the legal and technical dimensions of their cases.
The JAMS Technology Industry Group formalizes capabilities that already exist across JAMS by creating a dedicated entry point for technology-related matters. The group brings together experienced neutrals, specialized ADR processes and operational support designed for disputes involving AI, intellectual property, software and SaaS platforms, cloud computing, cybersecurity, blockchain, digital assets, fintech and health technology. Its goal is to help parties identify the right neutrals, procedures and resources at the outset of a dispute, improving efficiency while giving highly technical matters the specialized attention they require.
Guiding the Responsible Use of AI in ADR
At the same time, technology is changing not only the disputes parties bring to ADR, but also the tools that lawyers, parties and neutrals use throughout the dispute resolution process. To address these developments, JAMS has established Neutral Guidelines for the Use of AI. These guidelines emphasize that while AI may support efficiency and administrative functions, the ultimate responsibility for decision-making, legal analysis, procedural rulings and awards must always remain with the neutral. The guidelines also underscore the importance of transparency, confidentiality, data security and professional judgment when AI tools are used in connection with a proceeding. In short, the guidelines reinforce a core principle: Technology may assist the dispute resolution process, but it cannot replace the independent judgment, credibility and experience that neutrals bring to resolving disputes.
JAMS also recognizes that the legal and regulatory landscape surrounding AI is evolving rapidly. Legislatures and regulatory bodies across the United States are actively considering laws governing the development, deployment and disclosure of AI systems. Several states are evaluating measures that would regulate the use of AI generally, while others are considering rules governing the use of AI in litigation, arbitration and other legal proceedings. JAMS is closely monitoring these developments and assessing their potential impact on ADR processes, confidentiality obligations, evidentiary standards and professional responsibilities.
Looking Ahead
Taken together, the JAMS AI Rules, Technology Industry Group and Neutral Guidelines for the Use of AI demonstrate JAMS’ commitment to remaining at the forefront of dispute resolution innovation. As technology continues to reshape business and society, JAMS is positioning itself to help clients resolve increasingly complex disputes while maintaining the fairness, integrity and human judgment that remain the foundation of effective ADR.
This article was originally published in the September/October 2016 issue of The Bencher, a bi-monthly publication of the American Inns of Court.The American Inns of Court goals of promoting professionalism,...
By Laura KasterIn my first article I showed you a picture of Poland, country in which a totally new reality replaced the old system. Now let me take you on yet another...
By Anna M. WróbelWhy Perspective-Take? The Rainbow… Perspective-taking is an essential part of our lives. Consider all the ways you use this skill in your life. Now consider all the ways you could...
By Caryn Cridland