Italy: An Introduction to Litigation: Highly Regarded
The dispute resolution sector is undergoing a period of dynamic transformation within the Italian economic and legal landscape in 2025, with consequences for law firms, businesses and their clients. Against a backdrop of modest economic growth combined with a renewed focus on strategic investments, market participants are increasingly seeking dispute resolution methods that are both efficient and dependable. This growing emphasis on efficiency is driving the accelerated integration of advanced technologies, most notably artificial intelligence, alongside a broader reliance on alternative dispute resolution mechanisms as viable and effective solutions.
Artificial intelligence has clearly emerged as a strategic resource in the field of dispute resolution. While the national implementation of Regulation (EU) 2024/1689 (the “AI Act”) has undoubtedly played an important role, the true turning point for the legal profession in Italy is represented by Italian Law No 132/2025, which goes beyond the introduction of a general regulatory framework for artificial intelligence by imposing specific disclosure obligations on legal professionals who make use of automated systems in the provision of legal advice or representation. Lawyers are now required to provide clients with clear and comprehensive information regarding the nature, functioning and impact of such technologies on the legal services delivered. As a result, transparency within the lawyer–client relationship is significantly reinforced, while the central role of human judgement remains fully preserved.
This evolving legislative framework is further supported and reinforced by initiatives promoted by professional bodies. In December 2024, the Milan Bar Association adopted its “Charter of Principles for the Responsible Use of AI in the Legal Profession” (HOROS), which sets out ethical standards focusing on transparency, human oversight and data protection. Subsequently, on 2 October 2025, the Council of Bars and Law Societies of Europe (CCBE) published a dedicated guide addressing the use of generative artificial intelligence by lawyers. This document offers practical guidance and ethical recommendations aimed at fostering responsible and consistent AI adoption across the European legal community. In addition, on 13 October 2025, the Italian National Bar Council (the Italian Consiglio Nazionale Forense), acting pursuant to Article 13 of Italian Law No 132/2025, issued a model disclosure form that legal professionals may use in communications with clients and represented parties.
At the same time, arbitration continues to consolidate its role as a preferred mechanism for resolving commercial and corporate disputes. The 2025 Annual Report of the Milan Chamber of Arbitration points to a clearly positive trend. In 2024 alone, 135 arbitration proceedings were initiated, with an overall value exceeding EUR1,367 million, representing a 151% increase compared to the previous year. These figures demonstrate that arbitration is increasingly perceived by economic operators as a primary dispute resolution tool, rather than merely an alternative to traditional court proceedings.
Among the most significant developments highlighted in the Report is the growing use of sole arbitrators, who were appointed in 63% of cases, marking a 16% increase compared to 2023. This trend reflects a clear preference for more streamlined, efficient and focused procedures. Simplified arbitration proceedings have also expanded considerably, growing by 57% and now accounting for 35% of all cases administered by the Milan Chamber of Arbitration. These proceedings are characterised by an average duration of only 4.7 months and a median dispute value of approximately EUR77,000.
From a sectoral standpoint, corporate arbitration remains the most widespread category, representing 43.82% of cases when shareholder and governance disputes are considered together. This is followed by disputes arising in the construction sector, supply contracts, consultancy agreements and real estate transactions. Such diversification confirms arbitration’s capacity to adapt effectively to a broad range of complex legal scenarios, offering swift, specialised and confidential dispute resolution. Notably, 52% of cases concluded with the issuance of an arbitral award, while more than 41.7% were settled, underscoring arbitration’s effectiveness both as an adjudicative mechanism and as a conciliatory instrument.
Another noteworthy trend concerns the increasing involvement of individual users, whose recourse to arbitration rose by 58%. Arbitration is therefore becoming progressively more accessible, extending beyond large corporate entities to include professionals, business partners and private individuals. This expansion is also linked to the Milan Chamber of Arbitration’s strengthened national presence. In 2024, it inaugurated a new office in Rome and enhanced its co-operation with local Chambers of Commerce and professional associations throughout Italy.
Within this broader context, arbitration and the responsible use of artificial intelligence emerge as complementary tools capable of responding to the evolving demands of the civil justice system. While artificial intelligence facilitates more rational information management and supports legal decision-making processes, arbitration offers a flexible, confidential and technically proficient forum for dispute resolution. Both approaches align with a wider shift towards personalised and efficient dispute management models that are increasingly tailored to clients’ needs and responsive to the competitive dynamics of the legal services market.
Overall, the outlook for 2025 appears positive and promising. The combined effect of technological innovation, legislative developments and the consolidation of alternatives to state litigation is contributing to enhanced public confidence in the justice system. Legal professionals are therefore encouraged to embrace these changes by integrating technical competence with ethical awareness and openness to innovation. This balanced approach enables the profession to address emerging challenges effectively, ranging from client expectations and technological adaptation to strategic litigation planning and the optimal use of alternative dispute resolution tools. Ultimately, it is precisely this ability to adapt – harmonising tradition with innovation – that defined the resilience and strength of Italy’s dispute resolution system in 2025, ensuring the delivery of timely, concrete and high-quality outcomes while fully respecting fundamental legal guarantees.