Disputes in the construction industry are frequent, complex, and costly.
Delays, unclear contracts, and poor record-keeping are among the most common causes. While accurate documentation has always been vital, AI is beginning to transform how this information is created, managed, and analysed. Its growing influence raises an important question: how will AI shape the way disputes are handled in the years ahead?
At a recent CIOB Lecture, Mark Farmer noted that AI and developing tech has the potential to lead to a need for a wholesale re-think of the way construction is structured, and at the very least a need for significant re-skilling.
Current Use of AI in Construction Law
AI is already part of the construction and legal landscape. In construction law specifically, contract review software can scan contracts and flag risks such as unclear wording or conflicting terms. This is particularly valuable in standard contracts like JCT and NEC, where small amendments can shift responsibility significantly.
AI-driven “e-discovery” platforms such as Relativity, Everlaw, and DISCO can quickly search and categorise records, helping legal teams identify key evidence much faster and at a lower cost than human-led methods.
Some firms are also experimenting with AI to monitor live project data. By linking scheduling software with financial records, tools like Autodesk Construction Cloud and Bentley SYNCHRO can flag potential delays or cost overruns before they escalate. This shifts AI from a reactive to a preventative role, giving contractors the chance to address problems before they become disputes.
This year, the CIOB released new regulations on the use of AI in international arbitration. Key takeaways include:
- Arbitrators’ powers to give directions and make procedural rulings on the use of AI.
- Disclosure may be required where use of an AI tool has an impact on, the evidence, outcome of the arbitration.
- Arbitrators may consider using AI tools for their mandate to enhance the arbitral process.
- Transparency over use of AI.
- There is a template for AI Agreement and Procedural Order.
These guidelines also reflect any duties that may be imposed to arbitrators as a result of the EU AI Act, which will come into force in August 2026.
The Risks of Relying on AI
Generative AI tools like ChatGPT are also attracting attention. It has the ability to draft summaries or translate technical detail into plain language. However, in a recent UK case, a barrister was referred to the Bar Standards Board. This was after citing a non-existent case generated by ChatGPT in immigration tribunal proceedings “Barrister becomes latest ‘victim’ of fake ChatGPT cases”.
The UK High court has since warned over fake case-law citations. Dame Victoria Sharp emphasised that tools like ChatGPT “Are not capable of conducting reliable legal research”.
Regulators, including the Solicitors Regulation Authority and Bar Standards Board, maintain that while AI can support legal work, it can never replace the expertise, judgment and ethical obligations of qualified professionals.
The Future: Prevention and Evidence
AI has potential as a risk management tool. Data forecasting can highlight early signs of project delay or unexpected cost increases, giving contractors, developers, insurers, and legal professionals the chance to act before issues escalate. When disputes do arise, well-structured, data-driven evidence can strengthen cases and speed up resolution.
The Holcim climate litigation shows just how data-heavy modern disputes can become. In this case, residents of Pari Island, Indonesia, are suing Holcim for its role in global carbon emissions and the resulting sea-level rise that threatens their homes. The case relies on decades of emissions records, climate modelling, and environmental studies, a volume of material that AI could be useful in managing and presenting.
As construction projects face greater scrutiny over sustainability, similar disputes may become more common. AI will likely play a growing role in organising evidence and supporting legal teams in making complex information understandable.
AI will not replace legal professionals in construction law. Disputes remain rooted in human judgment, negotiation, and the dynamics between parties. But used responsibly, AI can support better planning, clearer records, and more effective dispute resolution. For contractors, developers, and legal teams, it is clear, AI is not a substitute for professional expertise, but it is becoming an increasingly useful tool.
To understand what AI could mean for your next project or potential dispute, visit our services page or get in touch with our team today.