CORD Releases 2026 Arbitration Rules with AI Guidance and Appeal Option
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TL;DR
- CORD released 2026 Arbitration Rules with specific AI use guidelines.
- An opt-in appeal route is available for parties seeking further review of awards.
- Daily costs apply automatically for missed procedural deadlines.
- Arbitrator fees now consider complexity as well as claim value.
Overview
On 4 September 2026, the Centre for Online Resolution of Disputes (CORD) announced major revisions to its Arbitration Rules.
The updates include detailed AI usage guardrails, an opt-in appeal mechanism, automatic daily costs for procedural delays, and a restructured arbitrator fee system.
These reforms aim to address frequent complaints about arbitration procedures, enhancing transparency, accountability, and efficiency in CORD-administered cases.
What Happened
On 4 September 2026, CORD unveiled its revised 2026 Rules of Arbitration.
Rule 38 defines five core principles for AI use in arbitrations: transparency, accountability, confidentiality, fairness, and human oversight. The rule sets out permitted, disclosable, and prohibited uses of AI for arbitrators, with arbitral decision-making (including drafting awards and assessing credibility) reserved for human judgment.
An opt-in appellate process is introduced, allowing parties-by prior agreement-to have awards reviewed by the Mumbai Centre for International Arbitration (MCIA) appellate tribunal for material errors of law or fact.
New 'Delay Default Costs' impose daily financial penalties for missed deadlines, automatically triggering costs owed to CORD if parties do not meet prescribed timelines, subject to limited exemptions.
Arbitrator fees are now determined by a tier system reflecting both dispute value and complexity, rather than simply the amount in dispute. Parties may also agree to a different fee tier if desired.
Additional reforms include independent review of arbitrator challenges, an emergency arbitrator process for urgent relief, and provisions for suspending proceedings for mediation, with unused fees refunded if cases settle.
Context
CORD is a Bengaluru-based institution specializing in digital ADR services.
Complaints about arbitration delays, lack of appeal, unclear AI use, and fee structures have been common across sectors, underscoring the motivations for these rule changes.
The Mumbai Centre for International Arbitration (MCIA) acts as the appellate forum under the new rules if parties choose to include this option.
Why It Matters
- The new rules directly address long-standing concerns about arbitration efficiency, transparency in AI use, and limitations on appeal.
- Parties now have clearer frameworks for both technology use and procedural discipline, with financial consequences for delays and explicit boundaries for AI.
- The opt-in appeal process is a significant procedural option not commonly available in most other arbitration frameworks.