AI could play an important role in the future of ODR for securities market, says SEBI's Pramod Rao

SEBI introduced Online Dispute Resolution Mechanism to enable online conciliation and arbitration for resolution of disputes arising in the Indian Securities Market.

While there continues to be a need for human intervention, according to SEBI's Pramod Rao, AI could play a transformative role in Online Dispute Resolution (ODR).

"While we are still a distance away from AI replacing humans, the availability of these tools, especially for arbitrators and mediators, is something ODR institutions should consider," he said. Rao was speaking during a panel as a part of the first anniversary celebration of Online Dispute Resolution Mechanism at the NSE in Mumbai.

Rao added that many disputes may not necessitate human intervention. "I would argue that these tools should become the building blocks of what I call automated dispute resolution," he said.

For example, in cases involving disputes over ATM withdrawals, Rao highlighted how technology could play a crucial role. "There's a digital footprint from the ATM, and cameras are in place. We can determine whether a transaction occurred without humans having to disagree," he explained.

SEBI introduced Online Dispute Resolution Mechanism to enable online conciliation and arbitration for resolution of disputes arising in the Indian Securities Market.

Talking about the growth and impact of ODR over the last one year, Rao also highlighted that as of today morning, there are close to 3500 disputes with a value of about 200 plus crores that have already been resolved through the Smart ODR portal, with a bulk of them in reconciliation.