Decentralizing justice in Latin America: how Kleros and blockchain are revolutionizing dispute resolution in Argentina and Mexico.

Written by Carolina Veas, Partner at CMS Carey y Allende in Chile

In today’s rapidly evolving digital commerce, where millions of cross-border transactions occur in milliseconds, our overburdened judicial systems struggle to keep pace - much like a 16th-century carriage trying to compete in a Formula One race. Despite efforts to modernize through Online Dispute Resolution (ODR) systems, these solutions often fall short, constrained by legacy structures and rigid legal frameworks. The complexity is further heightened in the global digital landscape, where disputes frequently span multiple jurisdictions, complicating the question of who must decide. As a result, it’s not uncommon for users to abandon minor e-commerce issues or stop using the platform. While artificial intelligence (AI) presents a promising alternative to address these challenges, its use in dispute resolution raises concerns. There remains significant hesitation around replacing crucial human judgment and discretion in resolving conflicts, particularly given the risks of algorithmic b…