FINLAND Trends and Developments Contributed by: Tuuli Timonen, Annika Lampela and Tony Chokairy, Dottir Attorneys
This growth has resulted in an uptick in commercial disputes connected to the defence sector, with more disputes likely on the horizon. The defence sector also inevitably faces regulatory pressure, particu- larly as regulators work to keep pace with new and evolving technologies. This may result in periods with unclear regulations and rules, potentially followed by heightened compliance obligations, creating space for differing interpretations and ambiguity. As a result, the likelihood of investigations, compliance issues, enforcement actions and related disputes may also grow in the defence sector. New Technologies in General, and AI in Particular Another notable trend in the Finnish dispute resolution landscape concerns disputes arising from the infor- mation technology sector and emerging technologies. These disputes arise at times out of new contractual frameworks and may face uncertain, evolving regula- tion. For example, in recent years there has been a rise in the number of disputes related to cryptocurrencies and blockchain-based assets. While such technolo- gies can no longer be considered entirely “emerging”, they illustrate how technological innovation may gen- erate disputes, particularly in fields where regulation of emerging technologies is still evolving. In addition, contractual disputes are increasingly aris- ing in connection with cybersecurity incidents, data breaches, and software outsourcing arrangements. Cybersecurity attacks and data breaches may trig- ger disputes regarding liability, compliance with data protection obligations, and the adequacy of security measures. Similarly, software outsourcing arrange- ments can give rise to disputes concerning failures or delays in performance, as well as responsibility for system vulnerabilities. The adoption of AI across industries is expected to give rise to a slew of disputes, for example, related to liability for AI-generated outcomes, intellectual prop- erty rights in AI outputs, the training of AI models and the data used for that purpose, and data protection concerns related to the use of AI. While some of these issues are addressed by the EU’s AI Act, as AI contin- ues to develop, it will likely become more extensively regulated within the EU and consequently, Finland.
In addition to generating novel substantive disputes, AI is also reshaping procedural aspects of litigation and arbitration in Finland. While national courts have not yet adopted AI tools on a broader scale – and are somewhat unlikely to do so in the near future – law firms have adopted and continue to adopt such tools to assist in legal work. Therefore, while national court judges are less likely to utilise AI in their work, it is increasingly likely that in commercial arbitration, Finn- ish arbitrators will have such tools at their disposal. This raises questions of disclosure obligations if arbi- trators choose to utilise such tools, questions which for now are unregulated in Finland. AI also (at least seemingly) makes legal advice more accessible and can lead clients to be tempted to “cut out the middleman” (ie, the lawyers), when litigating disputes. Already, courts in Finland have reported a surge of cases brought by parties utilising AI to write their submissions. While AI can be a powerful tool, without the requisite knowledge to evaluate its output, it can unnecessarily broaden the scope and complex- ity of disputes, resulting in excessive costs, as well as place strain on the courts through unnecessarily convoluted or even frivolous cases. The use of AI for legal drafting by non-professionals also raises poten- tial issues with legal privilege, as well as the liability of AI providers for legal advice, though these issues are yet to receive broader attention in Finland. The Energy Sector, Construction and Industry New technologies are also emerging in the energy sector, leading to new kinds of projects related, for example, to green hydrogen, power-to-X, energy stor- age systems, and carbon capture. At the same time, traditional renewables are being scaled up. Projects are becoming increasingly complex and multi-layered, often with various sectors such as transport, energy and industry intersecting. Emerging energy forms, increasing complexity and the intersection of different sectors lead to the need to reconcile or align different contractual models and frameworks and apply them to new circumstances – with varying success. The relative novelty of such arrangements increases the likelihood of gaps and ambiguities in risk allocation. This inevitably gives rise to complex disputes, often relating to new kinds
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