Shifting grounds: the trends reshaping international arbitration

Shifting grounds: the trends reshaping international arbitration

International arbitration is undergoing transformative changes at a remarkable pace. Geopolitical shifts, technological advancements, and the growing emphasis on ESG considerations are rapidly shaping the way disputes are resolved globally. Staying ahead of these changes is critical for businesses and practitioners navigating this dynamic environment.

In our latest Arbitration Trends Report published today, we explore the following 12 key trends set to influence the arbitration landscape in 2025. Drawing on insights from our global team, this report provides actionable guidance to help stakeholders address the challenges and seize the opportunities presented by this complex landscape.

1. AI in International Arbitration: a fast-evolving landscape. Artificial intelligence is revolutionizing arbitration processes, from legal research to automated case management. We examine the potential and risks of integrating AI into arbitral practice, as well as its implications for efficiency and impartiality.
2. Geopolitical Shifts: impact of upcoming elections on investment treaty arbitration. Investment claims in 2025 will be heavily influenced by geopolitical shifts, including new administrations in Mexico and the US, the war in Ukraine, and China’s evolving trade policies. This section analyzes how changes in political leadership and policies are expected to give rise to new investor-state disputes and provides practical steps for investors.
3. Arbitration and State courts: allies, adversaries or both? The ongoing geopolitical tensions and sanctions imposed on Russia have profound implications for arbitration involving Russian parties or assets. This section examines some of the tools being deployed by national courts to navigate these challenges.
4. Investor-state mediation: a bridge over troubled waters? With the rising cost and complexity of arbitration, mediation is gaining traction as a viable alternative for resolving investor-state disputes. This trend explores its potential to foster more collaborative solutions.
5. Human rights and social issues in investment treaty arbitration: a growing trend. Environmental, social, and governance (ESG) considerations are increasingly central to investor-state disputes. This section focuses on the growing prominence of human rights and social issues in investment arbitration.
6. Arbitration as a tool for private capital disputes. As private capital flows increase, disputes involving private equity, venture capital, and hedge funds are becoming more prevalent. This section delves into the unique characteristics and complexities of arbitrating these disputes and arbitration as a tool for resolving them.
7. Arbitration of space disputes: time for take-off. With the rapid commercialization of outer space, disputes will increasingly occur in this uncharted territory. This section addresses the readiness of arbitration to handle conflicts arising from satellite launches, space exploration, and resource extraction.
8. Game-changing sports disputes: a new normal The global arbitration community is witnessing an uptick in high-stakes, precedent-setting disputes in the sports industry. We analyze how these cases are shaping the future of sports arbitration.
9. Privilege in international arbitration – should one set of rules apply? Different applications of privilege in arbitration proceedings can create issues for parties to disputes. This section explores how arbitral tribunals address privilege across jurisdictions and evaluates calls for a uniform set of principles.
10. The shift from EPC to EPCM: a recipe for more complex arbitrations? The transition from Engineering, Procurement, and Construction (EPC) contracts to Engineering, Procurement, and Construction Management (EPCM) models is generating intricate disputes. This section highlights the challenges and opportunities arising from this shift.
11. The internationalization of arbitration in Brazil: a rising trend. Brazil is emerging as a significant player in international arbitration, driven by legal reforms and growing foreign investment. This section explores the factors contributing to Brazil’s rise as an arbitration hub.
12. Shifting sands: the Middle East’s evolution into an arbitration hub The Middle East is positioning itself as a key player in international arbitration, supported by new legal frameworks, arbitration centres and more positive court decisions. We explore the factors driving this transformation and its implications for the region and beyond.

Read the full report here: International arbitration in 2025 | Freshfields

If you’d like to discuss any of the topics covered, please reach out to one of the authors, your usual Freshfields contact or me, Ashley Jones.