The Digital Revolution in Scottish Dispute Resolution: How AI is Transforming Mediation
The Scottish courts are often faced with a mountainous backlog with parties increasingly demanding faster, more cost-effective solutions to complex dispute cases. Mediation continues to grow and is beginning to emerge as a preferred alternative to traditional litigation.
With the rise of artificial intelligence, we must consider the impact this will have on mediation in the legal landscape.
What is Mediation?
Mediation is a form of Alternative Dispute Resolution where a neutral third party known as the ‘mediator’ facilitates discussions between the disputing parties. The mediator will try to reach mutually agreeable solutions between the parties.
The Rise of Mediation in Scotland
Mediation has continued to experience significant growth in Scotland, driven by both policy support and practical necessity. Mediation can be especially useful in particular types of disputes such as low value claims or disputes between families and loved ones. Court actions are often prohibitively costly and financially disproportionate. Separately, courts are not generally well suited to deal with emotions or feelings - whilst the legal questions will be determined, parties to an emotive dispute may find that the underlying cause remains.
Mediation hubs exist in 22 Sheriff court areas, and the Scottish Government has actively promoted the expansion of 17 new hubs throughout Scotland.
The Scottish Civil Justice Reform Programme has also been instrumental in the rise of mediation. The program allows free mediation services for claims up to £5,000 and courts are directed to encourage parties to engage in mediation for claims of this type.
The appeal of mediation is clear: where court proceedings may take several years and cost thousands of pounds, if used correctly, mediation can resolve disputes in a matter of weeks for a fraction of the cost.
Artificial Intelligence (AI)
The integration of AI into mediation represents the next revolutionary step in dispute resolution in Scotland. Many law firms are already harnessing legal technology to enhance both efficiency and accessibility for clients.
Data Analysis and AI-powered Case Assessment tools
AI systems can analyse vast amounts of databases of similar cases which can identify settlement outcomes in a matter of minutes. These tools are particularly valuable in complex commercial disputes where vast amounts of documentation must be reviewed.
Enhanced Virtual Mediation Platforms
The COVID-19 pandemic accelerated the adoption of virtual meeting platforms, and AI has made these platforms increasingly more sophisticated. Most platforms such as Zoom and Teams now provide for real-time transcription for meetings, converting spoken words into real life-text during meetings, providing accessibility to participants. Many platforms have technologies which allow for note taking during the session, allowing the mediator to focus on the meeting while AI captures all the important points and details.
Virtual platforms have an additional benefit of connecting parties across different time zones. This enables mediations to commence virtually which will reduce travel costs and time constraints for participants.
Challenges
Despite the transformative nature of AI, there are significant challenges that require careful consideration.
Data Privacy and GDPR concerns
Given the confidential nature of mediation, solicitors must ensure any AI tools used for data analysis must comply with GDPR.
Over-reliance on AI
The recent English Divisional Court’s judgment in Ayinde, R v Qatar National Bank QPSC & Anor [2025] EWHC 1383, highlights the potential consequences of blind trust in AI technology. In this case, various cases, were presumed to be generated from AI, that were presented to the court without verification. The Judge highlighted that the legal profession must maintain rigorous verification standards when utilising AI-generated content.
This judgement serves as a reminder to use AI as a tool to supplement, but not to replace the human element of your own expertise and judgement.
The Future Landscape – Emerging Technologies
Looking ahead, emerging technologies such as Blockchain technology and smart contracts are poised to create immutable records of settlement agreements, ensuring unprecedented transparency and enforceability. Meanwhile, sophisticated AI translation services will break down language barriers in international disputes, making cross-border resolution more accessible and efficient.
Conclusion
The Scottish Government's commitment to alternative dispute resolution, has created an environment where mediation is not just encouraged but now increasingly expected. Embracing these revolutionary technologies will require a balanced approach: leveraging AI's powerful capabilities while maintaining the human insight, empathy, and professional judgement - that form the cornerstone of truly effective dispute resolution.
Karolina Navickaite is a trainee solicitor at Balfour and Manson LLP