1 AAA Law Associates (Karachi, Pakistan)
DOI: https://doi.org/10.29202/asl/16/5
Received: 12 October 2025 / Accepted: 7 December 2025 / Published: 30 December 2025
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Abstract
The increasing commercialization of space, coupled with the increasing number of private parties, cross-border commercial agreements, and complex technical disputes, has created a need for effective dispute resolution mechanisms. Alternative Dispute Resolution (ADR), particularly arbitration and mediation, is attracting attention from space investors due to its confidentiality, technical expertise, and procedural flexibility. At the same time, advances in artificial intelligence (AI), particularly simulation and creative systems, are being integrated into ADR workflows, from document review and case simulation to scoring systems, predictive analytics, and resolution recommendations. This article examines the regulatory challenges associated with the use of AI-based simulation software in ADR for disputes arising from or related to space trade. It summarises the relevant international legal framework (space treaties and international arbitration instruments), identifies gaps and risks (jurisdiction, liability, transparency, due process, probative value of simulation results, State liability and insurance) and proposes a multi-layered regulatory and administrative framework that combines international soft law, rules of arbitration institutions, contract drafting, technical standards and national enforcement measures. The central argument is that the legal framework for space activities and established arbitration structures together provide a framework for regulating the use of AI in ADR in space commerce. However, proactive and coordinated intervention by COPUOS/UNOOSA, UNCITRAL, arbitration institutions, and national law is needed to ensure fairness, accountability, and enforcement.
Keywords: Regulation of AI, AI in Dispute Settlement, AI Simulation Software, Alternative Dispute Resolution (ADR).
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