Game Theory in Court, AI Arbitration Bias, and the T-Shaped Lawyer with Federico Ast

This week on the podcast, I sat down with Federico Ast. Federico is an economist, philosopher, and the founder of Kleros. He built a decentralized justice system that uses blockchain technology and game theory to resolve cross-border digital disputes online. We talked about crowdsourcing jurors like in ancient Athens, the terrifying reality of AI biases in arbitration, and why the next generation of lawyers must become "T-shaped" professionals to survive in a rapidly automating market. What you will learn Game theory in the courtroom. Discover how Kleros uses cryptographic tokens and financial incentives inspired by game theorist Thomas Schelling to guarantee that anonymous jurors evaluate evidence honestly and vote fairly by rewarding coherence with the majority. The AI bias problem. Federico ran a test comparing how two different versions of the same AI model resolved 99 real fintech disputes. Learn why one version heavily favored consumers based on written narratives, while a simple software update caused the AI to demand documentary proof and suddenly favor corporations. The T-shaped lawyer. Because artificial intelligence will soon handle the baseline task of knowing the law, lawyers must build a horizontal specialization. Learn why focusing on niche industries like esports, the metaverse, or tokenized intellectual property is the best way to future proof your career. Why this matters What mistake do junior lawyers make because no one explained this? They assume their primary professional value is memorizing legal rules. Federico points out that autonomous AI agents will soon handle the bulk of traditional legal analysis and processing. If your only skill is knowing the law, you will be outpaced by a software update. To survive in a market where justice can theoretically be delivered in under a day, you must transition from a generalist into an industry specialist. You must build a personal brand that generates human trust because clients will no longer hire you just for your legal knowledge. They will hire you for your judgment, your empathy, and your specific industry expertise. Three takeaways AI is a tool, not a judge. While artificial intelligence can deliver lightning fast initial assessments, fully automated binding arbitration is still a long way off. Human oversight remains essential to ensure legitimacy and catch algorithmic biases. Specialize immediately. Stop trying to be a generalist. Combine a strong vertical foundation in commercial law with a deep horizontal specialization in emerging digital markets. Build your brand in public. In a world increasingly run by algorithms and automated agents, human trust is your only remaining currency. Start producing content and sharing your insights publicly today to ensure clients know exactly who you are before they ever need to hire you. Guest: Federico Ast, founder of Kleros and expert in decentralized justice. Where to listen and how to support the show Search Studying Law Around the World on Spotify, Apple Podcasts, or YouTube. If you found value in this episode, please take a moment to follow the show and leave a rating. Selected episodes of Studying Law Around the World are eligible for Continuing Professional Development (CPD) credit with the Law Society of Ontario (LSO) and Continuing Legal Education (CLE/CPD) credit with the Law Society of British Columbia (LSBC). For approved episodes, accreditation details, and participation information, please visit: https://studyinglawaroundtheworld.com/