AI-Supported Mediation and Settlement Strategy

Mediation and settlement work often happen under pressure:

incomplete information;
anxious clients; and
moving targets on both sides of the table.

AI cannot tell you what deal to do. It can, however, help litigators prepare better for mediation, see options more clearly and keep track of scenarios once everyone is in the room.

This article looks at realistic ways to use AI to support mediation and settlement strategy in UK litigation and disputes work.

1. Clarify your theory of the case and interests

Before involving any tools, you still need human thinking about:

your core case theory (liability, causation, quantum);
your client’s true interests (not just “win the case”);
pressure points on each side (costs, publicity, relationships, timing).

AI can assist by:

turning long pleadings, advices and evidence into structured summaries;
helping you write internal memos that separate positions (“we say X”) from interests (“what would count as a good outcome?”);
generating checklists of issues to address before mediation (disclosure, expert positions, witness availability).

The key is that humans decide what matters. AI just makes it quicker to organise your own thoughts and material.

2. Build scenario ranges, not precise predictions

Clients often ask, “What are our chances?” or “What will we end up paying?”. AI is not a crystal ball for outcomes. It can help you:

explore scenario ranges under different assumptions;
capture cost and risk estimates in a consistent format;
present options more clearly in board or committee papers.

A simple pattern is to create a small scenario grid, for example:

row = different legal outcomes (strike‑out, partial win, full trial loss, etc.);
columns = damages range, own costs, adverse costs, time to resolution, non‑financial impacts.

AI can help by:

turning your rough input numbers and narratives into a clean table with pros and cons;
drafting short descriptions of each scenario that can be shared with clients;
highlighting qualitative factors (reputational risk, operational distraction) based on your own notes.

Judgment about probabilities and preferred options must remain with lawyers and clients.

3. Prepare mediation position papers and reality‑testing questions

Mediation position papers and opening statements often chew up partner time. AI can speed up the groundwork by:

summarising technical sections of pleadings and expert reports for non‑lawyer readers;
suggesting neutral, non‑inflammatory wording for joint statements of issues;
helping you create lists of questions for reality‑testing, such as:
- “What is our best alternative to a negotiated agreement (BATNA)?”
- “What costs and management time will be spent if we do not settle?”

A sensible workflow:

You outline the structure and key points for a position paper.
AI drafts sections based on pleadings and evidence you select.
You edit tone, strategy and emphasis to fit the client and mediator.

AI should never be the author of your case theory. It is a drafting assistant for materials that you would write anyway.

4. Use AI to organise offers and concessions during mediation

In a fast‑moving mediation, it is easy to lose track of:

previous offers and counter‑offers;
which heads of loss have been discussed;
conditional proposals (“if X then Y”).

AI can help if you use it as a live note‑keeping tool inside your case management or notebook environment, for example:

capturing each move in a structured log (“Time, Party, Offer terms, Conditions, Response”);
generating short summaries of progress at agreed points (“where are we now?”);
suggesting issues that still need to be addressed before a term sheet is signed.

Crucially, this should happen in a secure environment, not via consumer chat tools. Everything recorded may later be important in explaining how a settlement was reached, so normal confidentiality and privilege rules apply.

5. Drafting heads of terms and settlement communications

Once parties approach agreement, AI can help with:

turning bullet‑point heads of terms into more structured draft settlement wording based on your own templates;
producing client‑friendly explanations of what the proposed deal means;
generating checklists of follow‑up actions (payments, announcements, implementation steps).

Guardrails:

always base drafts on your firm’s templates, not generic model clauses from the internet;
review carefully for tone and unintended admissions – especially in joint statements;
keep records of which parts were AI‑assisted for internal quality control.

The goal is to free up senior time for negotiating the right deal, not for re‑typing standard provisions.

6. Keep privilege, confidentiality and data protection front of mind

Mediation and settlement material is often:

privileged (without prejudice, legal advice);
highly sensitive commercially;
intertwined with personal data.

When using AI around these matters:

only use approved, governed tools, not public chatbots;
minimise the data you share with any external provider, even under contract;
ensure prompts and outputs are logged and stored with the matter file, not floating in personal accounts.

You should be confident that, if challenged by a court or regulator, you can explain exactly how AI was used and how you protected privileged material.

Where OrdoLux fits

OrdoLux is being designed with live disputes and settlement work in mind:

documents, emails and notes for each matter live in one place, so AI can help with summaries and scenario grids from reliable inputs;
matter‑level logs show how AI was used to draft position papers or notes, supporting supervision and audit;
prompts and workflows can be tuned for mediation and settlement tasks, while keeping responsibility for advice and strategy firmly with lawyers.

The aim is that, when you prepare for mediation using OrdoLux, AI acts like a diligent assistant: organising the file, tidying drafts and tracking movement — while you focus on negotiating outcomes that work in the real world.

This article is general information for practitioners — not legal advice, settlement advice or guidance for any particular dispute or mediation.

Looking for legal case management software?

OrdoLux is legal case management software for UK solicitors, designed to make matter management, documents, time recording and AI assistance feel like one joined‑up system. Learn more on the OrdoLux website.