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Generative Artificial Intelligence in Small Value Consumer Claims

Hallucination Risk, System Design, and Governance in Online Dispute Resolution

Bibliographic Data

ID7172439
AuthorsVivi Tan (0000-0002-2377-6173, corresponding author), Jeannie Paterson (0000-0002-2649-7591), Jeannie Marie Paterson, Julian Webb (0000-0003-1474-3393)
Year2025
Volume48
Issue4
Publication date2025-12-01
Open AccessNo
TypeARTICLE
VenueUniversity of New South Wales Law Journal (JOURNAL)
Journal identifiersISSN: 0313-0096 • E-ISSN: 1839-2881
PublisherUniversity of New South Wales Law Journal (PUBLISHER • AU)
DOI10.53637/qkhj4842
OpenAlexW7122825284
LanguageEN

This article examines the benefits and risks of generative artificial intelligence (‘GenAI’) use in an important domain that is currently under-serviced by the civil justice system: small value consumer claims, where GenAI has been proposed as a means of closing the access to justice gap. In the online dispute resolution (‘ODR’) field, use of digital tools such as expert systems and rules-based chatbots has been advanced to assist potential litigants. GenAI has considerable attractions in this context because of its adaptivity and flexibility in responding to prompts. The question is whether the risk of hallucinations inherent in GenAI undermines these benefits. While strategies such as retrieval augmented generation may improve the accuracy of GenAI in legal domains, it is unclear whether this technique can overcome the information asymmetries that typically characterise consumer disputes. Any resolution of these issues requires careful attention to ODR design and artificial intelligence governance

Corporate governance · Dispute resolution · Economic Justice · Generative grammar · Online dispute resolution · Artificial Intelligence in Law · Dispute Resolution and Class Actions · Ethics and Social Impacts of AI

Highly citedNo

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