If an arbitrator employs the use of AI to draft an arbitral award, or legal counsel uses AI and the data are leaked within that process, what is the legal consequence, and what will be the ethical concerns and enforceability issues? As artificial intelligence (AI) is used in every field, it has undoubtedly been used within the legal domain. However, its use should be regulated and balanced as there is an adjudication involved between the parties to decide the rights and obligations of the parties. In recent times, AI in arbitration has revolutionized dispute resolution by enhancing efficiency, automating legal research, and expediting case management. However, its application has a different set of challenges attached to it, particularly concerning due process, algorithmic bias, evidentiary integrity, and the enforceability of AI-assisted arbitral awards. This paper critically examines these legal implications, assessing how AI aligns with Indian arbitration laws and international frameworks. It further explores regulatory safeguards, the balanced and ethical use of AI, and the evolving role of arbitrators and counsels in the era of AI. By addressing these concerns, this paper aims to provide a comprehensive analysis of AI’s impact on the legal landscape of arbitration in India. To conclude, this paper proposes an expressed provision within the Arbitration and Conciliation Act, 1996, with respect to disclosure related to the ethical use of AI.