Today’s disputes are more technical, more complex, and often harder to manage.
Disputes involving blockchain, cryptocurrency, and data breaches have increased steadily, introducing new types of claims and evidence.
Artificial intelligence is adding another layer. In many cases, contracts were written for systems with consistent and predictable outputs. AI doesn’t always fit those assumptions, creating gaps around how performance is measured, evaluated, and enforced.
“Technology is the primary driver of today’s most significant disputes,” said Dana Welch, former general counsel and chief administrative officer of Robertson Stephens and an American Arbitration Association® (AAA®) arbitrator and mediator.
More complex disputes make the choice of resolution process more important, because how the case is managed can drive cost, timing, and outcomes.
Why Arbitration Works for Technical Disputes
Arbitration is designed to handle complex, technical disputes through more active case management and greater control over the process.
Welch emphasized a proactive approach from the outset. “At the preliminary hearing, I work with the parties to identify each anticipated phase of the case through issuance of the award,” she said. This early alignment helps avoid confusion and keeps the case moving efficiently.
She applies the same discipline to discovery, often the largest driver of cost. “I focus the parties on discovery of what is material and relevant … rather than permitting expansive discovery designed to uncover potentially admissible evidence,” Welch said. Keeping discovery focused limits the volume of information exchanged, reducing time and cost and the likelihood of disputes over what should be included.
When disagreements do arise, Welch addresses them promptly and informally, without defaulting to motion practice, which helps avoid delays.
Arbitration also usually allows parties to select a decision-maker with relevant expertise, which is often critical in cases involving highly technical subject matter.
“Unlike litigation, arbitration allows parties to select their decision maker … which tends to produce more predictable outcomes,” Welch said.
It offers greater privacy than litigation, as it is conducted outside of the public court system and allows parties to adopt confidentiality protections to safeguard proprietary technology and sensitive intellectual property.
Arbitration also provides flexibility in structuring the process, allowing it to be tailored to the needs, complexity, and scale of the dispute.
Ultimately, arbitration is designed to bring disputes to a conclusion. “Businesses generally seek resolution rather than prolonged appellate proceedings,” Welch said. With limited grounds for appeal, arbitration provides a clear endpoint, allowing businesses to resolve disputes and move forward.
When to Reassess and Resolve
Even in complex, technical disputes, not every case needs to run its full course.
While arbitration is designed to bring disputes to a conclusion, many are resolved earlier. Welch noted that mediation can be effective at the outset and later in the process. “A substantial percentage of disputes resolve before an evidentiary hearing,” she said.
Reconsidering settlement mid-dispute is not a sign of weakness — it reflects sound legal and business judgment.
See How Disputes Are Being Resolved Across Industries
A Wall Street Journal feature explores how companies are resolving conflicts faster, more efficiently, and outside the courtroom.