The role of artificial intelligence (AI) in modern mediation

The rapid advancement of Artificial Intelligence (AI) is transforming contemporary mediation by introducing technology as an active “Fourth Party” alongside disputing parties and the human mediator. This study critically examines the role of AI in modern mediation, with specific reference to Sri Lanka's community-based dispute resolution framework. Moving beyond traditional Online Dispute Resolution (ODR), AI-supported Dispute Resolution (AIDR) integrates tools such as predictive analytics, sentiment analysis, and natural language processing to enhance efficiency, objectivity, and accessibility. Using a qualitative research design, the study draws on semi-structured interviews with Community Mediation Board chairpersons, volunteer mediators, Mediator Training Officers from the Ministry of Justice, and legal technology researchers, supplemented by an analysis of relevant academic literature and policy documents. The findings reveal that AI can support mediation through administrative automation, intelligent case summarization, real-time translation, emotional diagnostics, and data-driven reality testing. However, significant ethical concerns emerge, including algorithmic bias, transparency deficits, confidentiality risks, and the inability of AI to address emotional reconciliation. The study argues for a hybrid, human-in-the-loop model in which AI augments rather than replaces the mediator, ensuring both efficiency and ethical integrity in dispute resolution.