A Defining Year: The 2026 Trends Shaping International Arbitration

The world of international arbitration is undergoing rapid evolution as businesses confront geopolitical uncertainty, the acceleration of technological change, and an increasingly complex regulatory environment. Staying ahead of these shifts is not just a matter of legal strategy but a critical component of protecting value and sustaining growth.

We are pleased to announce the release of our annual report, Arbitration Trends in 2026. Drawing on the insights of our global international arbitration team, the report identifies the eleven trends we believe will be critical in shaping the arbitration landscape over the next year. It offers forward-looking analysis and actionable guidance to help you stay ahead in an evolving business and legal order.

Here is an overview of the key trends explored in our 2026 report:

1. Risks for businesses operating in armed conflict zones: an evolving battleground. The global landscape of armed conflict is at its most complex since the Second World War. We anticipate a surge in conflict-related commercial and investor-state arbitration as companies face increased exposure to sanctions, operational disruptions, and legal and reputational risks.
2. Borders and beyond: sovereignty and boundary disputes driving arbitration. Sovereignty and boundary disputes will continue to be a major driver of arbitration, not just between states but also for businesses in the energy, extractives, and infrastructure sectors. As states seek control over contested spaces and new frontiers like the deep seabed and outer space, businesses face growing legal and geopolitical uncertainty.
3. Navigating a changing defense landscape. Escalating geopolitical tensions, technological innovation, and supply chain pressures are transforming the defense sector. As defense spending climbs and projects become more complex, international arbitration offers the flexibility, confidentiality, and neutrality needed to safeguard both commercial interests and national security.
4. State power and the reshaping of investor-state arbitration. Governments are taking a firmer hand in sectors viewed as critical to national interests, from mining to technology, often invoking national security. This trend is reshaping investor-state arbitration, as tribunals are increasingly called upon to balance treaty protections with national policy concerns.
5. Cross-border tax and tariff disputes move to center stage. Assertive and sometimes retroactive fiscal policies are making tax measures a central catalyst for high-stakes, cross-border disputes. Businesses must prioritize fiscal risk management as local audits escalate into complex disputes involving litigation, arbitration, and diplomatic channels.
6. Venezuela’s turning point: opportunity amid recovery. As Venezuela moves toward a structured recovery, significant opportunities are emerging for investors and award creditors. This chapter explores how legacy awards and dormant claims can be transformed into strategic assets for negotiation and reinvestment in a revitalizing market.
7. AI’s industrial revolution: a new frontier for disputes. Artificial intelligence has created a new global industrial ecosystem spanning semiconductors, data centers, and energy. This capital-intensive build-out, coupled with intense geopolitical competition, is creating fertile ground for a new wave of complex arbitrations at the intersection of technology, trade, and geopolitics.
8. AI-generated procedural challenges in international arbitration. While AI offers clear benefits for efficiency, its expanded use is creating a new species of procedural challenges. Safeguarding the integrity of the arbitral process now requires greater attention to transparency, data security, and verification.
9. Building tomorrow’s digital backbone: risks in data center construction. The exponential growth in data center construction is bringing complex environmental, construction, and regulatory risks. These challenges are likely to fuel a rise in high-value, multi-party disputes, with arbitration emerging as the preferred forum for resolution.
10. Technology disputes in arbitration: an expanding frontier. The technology sector is seeing a corresponding increase in complex disputes, driven by post-M&A claims, a new wave of mass arbitrations, and conflicts concerning digital assets. Arbitration is increasingly the venue of choice to handle these sensitive, cross-border issues.
11. Patent disputes: the growing role of arbitration. Parties are increasingly looking to resolve complex, multi-jurisdictional patent disputes through arbitration. Arbitration offers efficiency, confidentiality, and global enforceability, avoiding the cost and risk of conflicting decisions from parallel court litigation.

These trends highlight a landscape where disputes are expanding in complexity, reach, and strategic importance. Understanding them is key to anticipating and responding to a changing risk environment.

Read the full report here: Arbitration Trends in 2026

If you would like to discuss any of the topics covered, please reach out to your usual Freshfields contact or any of the authors listed in the report.