Generative AI can help lawyers, but law requires human mind: K Shanmugam

Over the years, Singapore and India have seen more collaboration on ADR and we are on the right path, said Shanmugam

The Singapore Convention Week (SCW) was a signature event in the city-state, focusing on dispute resolution and all its aspects. Its headline event was the UNCITRAL Academy Conference and Capacity-Building Workshops, co-organised by MinLaw and the United Nations Commission on International Trade Law (UNCITRAL), taking place from 29-31 August, 2023. Themed “Tomorrow’s World Today: Leading the Future of Dispute Resolution”, the UNCITRAL Academy seeks to spotlight new and pressing issues in the area of dispute resolution. Ahead of the event, Singapore Minister of Law K Shanmugam, in an email interview with Bhavini Mishra, talked about Alternative Dispute Resolution (ADR) in the regional and global landscape, the status of Singapore-Indian relations in terms of ADR, and the future of ADR.

What is the regional and global landscape and how does Alternative Dispute Resolution (ADR) fit in?

Some trends are noticeable.

First, a shift in the economic centre of gravity to the Pacific and Asia. Thirty years ago, Asia accounted for 22 per cent of global GDP, and 10 per cent of global foreign direct investment (FDI). Today, Asia accounts for 37 per cent of global GDP and 54 per cent of global FDI.

Next, geopolitical tensions. By an estimate of the Organisation for Economic Co-operation and Development, about 80 per cent of international trade is through global supply chains. Today, we have the persisting situation in Ukraine, uneasiness in the South China Sea, and deepening mistrust among global superpowers. We have seen how disruptions in supply chains can lead to rising costs.

Third, the development of increasingly powerful and sophisticated technological tools.

What do these mean for ADR?

With increasing economic activities and business transactions in the region, there has been increased demand for dispute-resolution services. Over the past decade, new arbitral institutions have been set up in Saudi Arabia, Uzbekistan, and India, for example. Countries are reviewing their arbitration and mediation legislation to ensure that they are up-to-date and continue to support the needs of businesses -- Japan is a recent example.

Could you provide an update on the status of Singapore-Indian relations in terms of ADR? For example, have any new memorandums of understanding (MoUs) been established or new agreements at the Asian level?

Singapore and India have had strong ties, particularly in trade and investment. Today, Singapore is among India’s largest trade and investment partners in the Association of Southeast Asian Nations in 2021-22 and is a leading source of FDI in India.

Over the years, Singapore and India have seen more collaboration on ADR and we are on the right path.

In 2022, the Singapore International Arbitration Centre (SIAC) signed an MoU with the Federation of Indian Corporate Lawyers (FICL). Both the SIAC and FICL aim to promote international arbitration as a preferred method of dispute resolution.

The Singapore International Mediation Centre (SIMC) signed an MoU with the International Arbitration and Mediation Centre, Hyderabad, on August 30. The two organisations aim to promote and facilitate the use of mediation in cross-border commercial disputes across sectors. The SIMC has always enjoyed good relations with Indian counterparts.

The SIAC has Indian practitioners on its board and court of arbitration, as well as on its panel of arbitrators.

The partnerships between India and Singapore on this front provide both countries the chance to exchange best practices of ADR techniques.

With the goal of broadening participation, there is growing discussion on the efficacy of online mediation. Furthermore, as we enter the era of artificial intelligence, what role will that play in the realm of ADR? What does the future hold for ADR practices?

The process of dispute resolution, once viewed to be a physical, high-touch one, can now be conducted online. With the pandemic, online and hybrid dispute resolution have become the norm, and most counsel, judges, arbitrators and mediators around the world have taken well to it.

The legal industry, as a whole, has also become more borderless, with clients now getting increasingly used to instructing their service providers over email or virtually.

In Singapore, we offer physical, hybrid and online dispute resolution services.

Generative AI can help lawyers perform some knowledge work such as conducting legal research by asking natural questions and generating first drafts of submissions.

But law is a profession that requires the human mind and touch.