This is How AI and Blockchain Will Change The Justice System: DeLaw Explained
Are we in a decisive era of technological change? Learn more about this new trend called DeLaw
Key Takeaways
- AI is entering the legal system, as seen with Estonia’s “robot judge” for small claims, raising questions about the contribution of AI-driven legal decisions.
- VAIOT introduces DeLaw (Decentralized Law), combining AI efficiency with blockchain transparency to create transparent, and fair legal tools.
- Traditional legal systems face significant challenges, including lengthy dispute resolution times and high costs, which DeLaw aims to address.
- VAIOT’s ecosystem includes innovative tools like DDRS, offering a comprehensive approach to legal tech that sets it apart from competitors.
- The future of law is being shaped now. VAIOT contributes to this change by leading DeLaw and balancing AI innovation with human oversight to ensure legal tools and Justice is accessible to everyone.
In October 2019, Estonia made headlines by announcing the development of an AI-powered “robot judge” to handle small claims and disputes. The system, designed to analyze legal documents and other relevant information, aims to adjudicate cases with claims under €6,400, potentially clearing backlogs in the country’s courts (World Economic Forum, 2019).
While still in its testing phase, this initiative highlights a growing trend: Integrating artificial intelligence into legal systems. The Estonian AI judge, if successful, could significantly reduce the workload of human judges and accelerate the resolution of minor cases.
However, this development also raises important questions.
How will these AI systems make decisions? Can they truly understand the nuances of each case? And perhaps most crucially, how can we ensure fairness and transparency in their judgments?
As we stand at the beginning of this new technological revolution, we face a unique opportunity — and responsibility — to shape its future.
Historian Yuval Noah Harari explained further in his interview with The Late Night Show:
“ It’s the first time in human history that nobody has any idea how the world will look like in 20 years.”
Politically, before there were certain things that whilst unpredictable (epidemics, invitations, international alliances) countries and legislators would still be able to be prepared and apply policies to these matters. Now, with the accelerating change that brings technology such as blockchain and AI, we face a dynamic transformation and can make a significant change in what the future looks like.
In this context, VAIOT is developing tools and systems that form the foundation of what’s being called “Decentralized Law” or DeLaw. These solutions aim to harness the potential of AI and blockchain technology to create innovative legal tools that are based on transparency and accessibility.
But what exactly is DeLaw? And how might it address the challenges posed by AI-driven legal systems? In this article, we’ll explore these questions, examining VAIOT’s approach to decentralized legal solutions and its potential impact on the future of law.
Understanding DeLaw: VAIOT’s Vision for Decentralized Legal Solutions
As artificial intelligence continues to permeate various sectors, including law, regulatory bodies are taking steps to ensure its responsible use. The European Union’s AI Act and the United States’ AI Bill of Rights both emphasize the need for human oversight of machine learning models. These regulations underscore a crucial point: while AI can enhance legal processes, it shouldn’t replace human judgment entirely.
In this sense, VAIOT stands out as the first VFAA-regulated Digital Asset in Malta, following the regulations from the EU and compliance provided by VAIOT’s collaborator Grant Thornton. As such, VAIOT is committed to developing AI and blockchain solutions that align with legal standards and protect user interests.
VAIOT’s approach to DeLaw incorporates the concept of decentralized justice. This system uses crowdsourcing and blockchain technology to facilitate neutral and equitable dispute resolution and here’s how it works:
DeLaw then has the potential to address several challenges associated with the use of AI and the current outdated legal system:
- It provides a human-centric appeal mechanism for AI decisions.
- It adds a layer of transparency.
- It allows for ongoing auditing of AI models for fairness and potential biases.
- It provides faster and safer solutions for businesses or privacy-concerned individuals.
The Growing Opportunity in DeLaw
As our world becomes increasingly digital and interconnected, traditional legal systems are struggling to keep pace. Several key issues have come to the forefront.
According to a 2020 European Commission study, resolving a standard civil case in EU courts takes an average of approximately 400 days (European Commission, 2022). This aligns with findings from the European Commission for the Efficiency of Justice (CEPEJ), which reported that the average duration of civil proceedings can vary significantly, with some cases taking longer depending on complexity and jurisdiction (CEPEJ, 2018).
For instance, in the UK, the situation is indeed challenging, with some civil cases reportedly taking up to 19 months (approximately 570 days) to reach trial (HM Courts & Tribunals Service, 2022). This timeframe reflects ongoing issues within the UK judicial system, exacerbated by factors such as court backlogs and resource constraints.
With the rise of e-commerce and digital services, cross-border transactions have become commonplace. However, traditional legal systems often struggle to determine jurisdiction in these cases. The European e-Justice Portal has highlighted the increasing prevalence of cross-border civil and commercial cases, underscoring the growing necessity for more adaptable legal frameworks to address these challenges (European e-Justice Portal, 2021). This includes the fact that in the EU alone, there are 24 official languages, which can significantly complicate legal proceedings. The European Commission (2021) estimates that translation and interpretation costs in legal proceedings amount to over €100 million annually.
These challenges underscore the need for innovative solutions that can address the speed, cost, and accessibility issues inherent in traditional legal systems, especially in our increasingly digital and global society.
VAIOT’s Ecosystem: Leading the DeLaw Trend
VAIOT stands out in the DeLaw space with its comprehensive ecosystem of legal tools:
- Decentralized Dispute Resolution System (DDRS): This blockchain-based system resolves disputes within hours or days, compared to the 400-day average for traditional courts.
- Legal Torch: VAIOT’s web2 product which seamlessly integrates DeLaw technologies.
- ZKContractualPrivacy: Ensures privacy in agreements using zero-knowledge proofs and allows for contractual data proof sharing for business and personal purposes.
- AI Legal Assistant: Offers automated legal document creation and analysis while providing legal knowledge and assistance based on advanced, legal-specific LLMs produced by VAIOTContains technology such as ContractReader for decryption of contractual terms stored in a smart contract and Contractual Blockchain Intelligence (CBI) which allows to record contractual data and terms as part of blockchain contracts.
This ecosystem addresses a wide spectrum of legal needs, from contract creation to dispute resolution, all powered by AI and blockchain.
VAIOT’s Competitive Edge
While other players like Kleros, Aragon, and JUR offer decentralized arbitration services, VAIOT’s comprehensive approach sets it apart:
Broader scope:
VAIOT offers a full suite of legal tools and arbitration.
Web2 integration:
Legal Torch makes DeLaw accessible to non-crypto users.
AI integration:
VAIOT’s use of AI enhances efficiency and accuracy across its ecosystem.
The Future of DeLaw with VAIOT
In the coming era of AI in law, likely to see more automated systems making decisions that affect various aspects of our lives, including legal matters.
However, we shouldn’t fear AI. It has the potential to greatly improve the efficiency of legal systems and help us move towards inclusive justice. But to fulfill this promise, we need to place algorithms within an appropriate mechanism design to ensure that efficiency gains are not achieved at the expense of our democracies or individual rights.
VAIOT’s approach to DeLaw, with its integration of AI, blockchain, and human oversight, represents a step in this direction. As the digital world evolves, VAIOT keeps being at the forefront of legal tech. Future developments include:
- FIAT payment integration in DDRS
- API integrations with e-commerce platforms
- Enhanced AI capabilities for more complex legal tasks
As we move forward, it’s crucial to continue refining these systems, always keeping in mind the balance between innovation and accountability. The future of law is being shaped today, and it’s up to us to ensure it serves the interests of justice and democracy.
To learn more about VAIOT’s work in DeLaw and join the conversation about the future of legal services.
About VAIOT
VAIOT offers a portfolio of blockchain-based AI Assistants and on-chain Intelligent Contracts for businesses and consumers to provide automated services and transactions. VAIOT- AI and Blockchain for Legal Innovation.
Read our AI Legal Assistant Lightpaper here.
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