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AlixPartners' Asia Risk Advisory team rounds up the trends, imperatives, and real-world challenges that dominated the conversation this year, onstage and off.
Region-centric and region-confident: the defining focus of this year's Hong Kong Arbitration Week was more local than global.
Session after session underscored how quickly Asia's ADR landscape is recentring - both regionally, and around a major new battleground: digital asset disputes.
1) AI: from fringe to front and centre
Tech-driven arbitration is now a growth segment too important to ignore. But the pace of innovation is breeding caution: the pace of innovation and adoption of AI is uncertain, and predictions vary widely.
Certain pain points got a lot of airtime over the week, and may be make-or-break for staying competitive:
- Expertise crunch: cases centre as much on data assurance and algorithmic transparency as on contracts and clauses, and evidence can be impenetrable to non-specialists. Finding experts who can demystify opaque technologies for tribunals is a constant challenge.
- Legal operating models 2.0: AI isn't just sparking headline disputes – it's the engine driving wholesale transformation in case management. From automating due diligence to predictive analytics powering strategy, firms need to be agile and ready to integrate rapidly shifting tech.
- Leverage issues and the skills squeeze: as clients become less willing to pay for routine work that AI can automate, fee value is shifting upward to partner-level expertise – cutting billable hours and practical training for junior staff and expert witnesses. The result could be a talent pipeline that's underbilled and underskilled for the tech-heavy disputes of the future.
2) Regional problems, regional resolutions: Asian ADR is localising
Geopolitical flashpoints – including sanctions, national security, and cross-border investment – are fueling a surge in intra-Asia cases.
Key dispute trends:
- Semiconductors and trade barriers: as nations ratchet up export controls on chips, sanctions are now a live trigger for arbitration.
- Investor-state disputes: there has been an Asia-wide surge in complex cases, often tied to national security or sanctions issues.
Regional ADR teams are in the driver's seat – but a multidisciplinary global talent pool is still a critical advantage
The local ADR practices of international firms are beginning to operate with greater autonomy and less global oversight. At the same time, the most complex disputes require a deep bench of expertise and experience. Custom-building the right team drives enormous value, and often means staffing from beyond regional silos.
Hong Kong SAR: cohesive, confident, and riding the uptick in cross-border business
Sentiment is upbeat: the city's arbitration sector is hitting its stride post-COVID, bucking gloomy predictions for a decline. This year's attendees were a more regionally focused group, but with a marked sense of community and opportunity. Hong Kong's role as gateway to the Chinese market – especially in a volatile geopolitical moment – is set to cement its status as a regional arbitration powerhouse.
Musical chairs with arbitral seats – increasingly, practicality beats prestige
More clients are seeking out centres positioned for ease of travel and swift, reliable resolutions. As cost-efficiency and convenience become key drivers, emerging hubs are beginning to compete seriously with legacy venues.
Rich regional potential – for firms who can keep pace with client expectations: Overall, then, this year's HKAW underlined the sheer scale of regional opportunity – and the critical imperatives that come with it. Success now depends on navigating the shifting regulatory terrain, adapting to fee pressure as automation upends traditional working models, and building dual expertise in law and emerging technologies to meet the growing demand for digital asset arbitration. The teams that manage to combine value-driven tech adoption with agile strategy will stand out as essential partners in a fast-evolving landscape.
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