The use of Internet technology to settle conflicts between parties outside of the public court system is known as online dispute resolution (ODR). ODR, in its simplest form, is the practice of using technology to resolve conflicts.
It involves using technology actively to settle the issue, such as through video conferencing for hearings or electronic document sharing for filing, rather than just integrating it in some general way (such as online arranging a session).
Despite being evolved from ADR, ODR’s advantages go beyond e-ADR or ADR that is technologically supported.
ODR can make use of AI/ML-powered technology tools in the form of script-based solutions, automated dispute resolution, and curated platforms that are tailored to particular types of conflicts.

Benefits of ODR

It is cost-effective, convenient, and efficient, allows for customizable processes to be developed and can limit
unconscious bias that results from human interactions. In terms of layers of justice, ODR can help in dispute
avoidance, dispute containment and dispute resolution. Its widespread use can improve the legal health of
society, ensure increased enforcement of contracts and thereby improve the Ease of Doing Business Ranking
for India. Over time, the benefits of ODR and Digital Courts (technology in the public court system) together can
transform the legal paradigm as a whole.

1. Cost-effective: The cost of conflict resolution frequently transforms the procedure into a penalty and obstructs access to justice. In this regard, ODR presents a way of conflict settlement that both neutrals and disputants may afford. For instance, businesses experience a loss of productive time, a decline in employee health, a decline in investor confidence, a reduction in investments, and a slowdown in economic growth. While ODR cannot entirely eliminate all of these effects, it can help in their mitigation, which will make it cost-effective.
2. Convenient and quick: ODR can address such delays by providing a faster and more convenient process for the resolution of disputes. In itself, ADR employs simpler procedures and a fixed timeline for processes leading to efficient dispute resolution. To add to such benefits, ODR eliminates the need for travel and synchronisation of schedules. Similarly, the use of ODR within businesses such as e-commerce entities also provides consumers a one-stop avenue to resolve their disputes thereby making dispute resolution quicker and more convenient.
3. Allows for customisable processes: Numerous ADR variants have emerged in recent years that go beyond standard ADR procedures like arbitration and mediation. Med-arb, med-arb-med, and arb-med-arb are a few of the hybrid variations. In terms of the kinds of models that can be built, ODR’s integration with such non-traditional ODR procedures and the use of artificial intelligence may open up countless possibilities. ODR can therefore, in some kinds of instances, provide multi-door conflict resolution through curated and tailored processes. As a result, the user may find the dispute resolution procedure to be more convenient and cost-effective.
4. Encourages dispute resolution: By addressing important issues including lack of access to actual courts or ADR centres, the cost of conflict resolution, and limitations resulting from disability, ODR can dramatically enhance access to a range of dispute resolution processes. ODR methods, such as online negotiation and mediation, make the dispute resolution process less combative and challenging for the parties because they are predicated on reaching an agreement together. The dispute resolution procedure may seem more approachable to users if issues are settled in the privacy of their own homes. This enhancement in the entire experience may persuade more parties to choose this formal process over not asserting their rights at all in order to settle their disagreements.
5. Limits implicit bias caused by human judgment: There have been some worries raised about the influence of biases, prejudice, and stereotypes on decision-making processes and outcomes as a result of the heightened awareness of race, caste, and gender justice. Studies have shown that implicit bias and reluctance to interact with people from other communities might affect how mediation turns out. When settling conflicts, ODR procedures might minimize the Neutral’s implicit prejudice. ODR platforms, particularly those based on texts and emails, help resolve disputes based on the claims and information given by the disputing parties, rather than on the identities of these parties, by removing audio-visual cues relating to gender, socioeconomic standing, ethnicity, race, etc.

The successful integration and co-option of ODR across the world, has ultimately led to the development of
a few models of ODR all of which have been running in parallel across the globe. They are:

1. In-house private ODR Platforms run by individual businesses;
2. Private ODR Platforms or service providers catering to different categories of disputes and multiple
   modes of resolution;
3. Government-run or state-sponsored ODR programs and platforms and
4. Court-annexed ODR systems