The main dispute resolution methods in Brazil are litigation, arbitration, mediation and conciliation.
Litigation before state courts remains the default avenue for resolving commercial disputes. Major cities such as São Paulo and Rio de Janeiro have specialised commercial courts.
Arbitration is well-established and the preferred mechanism for high-value commercial disputes, particularly in M&A transactions, infrastructure projects, energy and corporate governance matters. Brazil is one of the leading arbitration jurisdictions in Latin America.
Mediation has grown substantially in recent years, particularly for civil and business disputes. Conciliation is also widely used, with mandatory conciliation hearings at the outset of civil proceedings. Courts have established dedicated mediation and conciliation centres across the country to facilitate consensual resolution.
Other Methods
Dispute boards have gained traction in infrastructure and construction projects as a way to resolve issues in real time during contract performance. For low-value consumer disputes, online dispute resolution (ODR) platforms offer a fast and accessible alternative to court proceedings.
Virtual Judiciary
Brazil’s court system is almost fully electronic. Cases are filed, managed and decided through digital platforms, with paper filings now rare exceptions. Virtual hearings became standard during the COVID-19 pandemic and have remained a permanent feature of the system. Most procedural acts – including submissions, notifications and even oral arguments – are conducted online, significantly reducing delays associated with physical document handling.
AI Integration
Brazilian courts have rapidly adopted artificial intelligence tools for case management, document classification, admissibility screening and decision drafting.
Binding Precedents
The Code of Civil Procedure strengthened Brazil’s system of binding precedents. Decisions from higher courts – particularly the Supreme Federal Court (STF) and Superior Court of Justice (STJ) – now carry greater weight, and lower courts are generally required to follow established case law. This shift has increased predictability, reduced repetitive litigation and accelerated the resolution of cases involving settled legal questions.
Limitation periods in Brazil vary depending on the nature of the claim.
Brazil operates a dual-track judicial system under the Federal Constitution, comprising both ordinary and specialised courts.
State Courts
State Courts handle the vast majority of commercial disputes at first instance. Each of Brazil’s 27 states (including the Federal District) has its own court system. First-instance decisions are reviewed by State Courts of Appeal.
Federal Courts
Federal Courts of first instance have jurisdiction over disputes involving federal entities, federal taxes and matters of federal interest. Appeals are heard by the Federal Regional Courts, which are organised into five regions covering the entire country.
Specialised Courts
In addition to the ordinary court system, Brazil has specialised branches for specific subject matters. Labour Courts have exclusive jurisdiction over employment disputes. Electoral Courts handle matters related to elections and political parties. Military Courts deal with crimes committed by members of the armed forces. Finally, Special Civil Courts offer expedited procedures for lower-value claims up to 40 minimum wages, providing a faster and more accessible forum for simpler disputes.
Higher Courts
The STF sits at the apex of the judicial hierarchy, with exclusive jurisdiction over constitutional matters. The STJ is the highest court for non-constitutional federal law, ensuring uniformity in statutory interpretation. Brazil also has the Superior Labour Court (TST) for employment matters and the Superior Military Court (STM) for military justice.
Brazilian law does not impose a general duty to attempt settlement before filing suit. However, certain claims against public entities (eg, social security benefits), consumer claims (eg, health insurance denials) and document disclosure lawsuits require demonstrating prior refusal by the opposing party.
Failure to comply with pre-action requirements may result in dismissal for lack of interest.
Brazilian civil proceedings follow a structured sequence:
After judgment, parties may appeal to the State or Federal Courts of Appeal, and subsequently to the Superior Courts. Once a final judgment is obtained, the prevailing party initiates enforcement proceedings to compel compliance.
Typical Duration
A typical civil lawsuit takes approximately three years to reach a decision on the merits. Appeals to superior courts may add another one to two years. After obtaining a favourable judgment, enforcement proceedings may take five to six years to locate assets and complete the necessary procedural formalities.
Court proceedings are public under the Federal Constitution. However, confidentiality may be decreed in cases involving:
Brazilian law provides two main types of interim relief, allowing parties to obtain court orders before the final judgment when waiting would cause irreparable harm.
Urgency Relief
This is the most common type of interim relief. The applicant must show a likelihood of success on the merits and a risk that waiting for the final judgment would cause serious harm. Courts may order measures such as freezing the opponent’s assets, requiring a party to stop certain activities, preserving evidence that might otherwise be lost, or temporarily granting the relief sought in the lawsuit.
Evidence-Based Relief
This type of relief does not require showing urgency. Instead, it is available when the claim is so clearly supported by documents or binding precedent that there is little room for dispute. For example, if a party has a signed contract proving the debt and the debtor has no plausible defence, the court may grant relief immediately without waiting for the full trial.
Interim relief is commonly sought in breach of contract cases, shareholder disputes, competition matters, intellectual property conflicts and consumer cases involving health matters (such as the supply of medications). Courts may also grant orders without prior notice to the other party when advance warning would allow the opponent to frustrate the relief – for instance, by hiding assets or destroying evidence.
Brazilian courts may grant different types of remedies depending on what the claimant seeks to achieve.
Declaratory Relief
Courts may issue judgments that clarify the legal situation between parties (eg, declaring whether a contract is valid, whether a party has a certain right, or whether an obligation exists). These judgments do not order any action but provide legal certainty.
Monetary Judgments
The most common remedy in commercial disputes. Courts order the losing party to pay damages, debts or other monetary amounts.
Specific Performance
Courts may order a party to do (or stop doing) something specific, rather than simply paying damages. To encourage compliance, courts commonly impose daily penalty fines that accumulate until the order is obeyed.
Brazilian law follows the principle of full compensation, meaning that the injured party should be restored to the position they would have been in had the harm not occurred.
Types of Damages
Courts may award compensation for actual losses (money already spent or assets lost) and lost profits (gains that the party would have earned but for the breach). In addition, courts may award moral damages for non-financial harm such as reputational damage, distress or humiliation.
No Punitive Damages
Brazil does not recognise punitive damages as a separate category. However, contractual penalty clauses are permitted and courts may reduce penalties that are deemed excessive.
Proving Damages
The claimant bears the burden of proving both the existence and the amount of damages suffered. In complex cases, courts commonly appoint neutral expert accountants to assess the value. For moral damages, the amount is determined at the judge’s discretion, guided by proportionality principles.
Arbitration is highly prevalent in Brazil and the dominant mechanism for complex, high-value commercial disputes. Brazil ranks among the leading arbitration jurisdictions in Latin America.
Arbitration is commonly used in M&A, shareholders’ agreements, joint ventures, corporate governance, energy, oil and gas, infrastructure, construction, and finance disputes. Public-private partnerships and concession disputes may also be arbitrated.
Not all disputes can be resolved through arbitration in Brazil. The Arbitration Act limits arbitration to disputes involving patrimonial rights that the parties are free to dispose of. This includes most commercial and contractual matters.
Certain categories of disputes cannot be submitted to arbitration, such as:
Arbitration offers several advantages in Brazil.
Arbitration also presents certain disadvantages.
The most prominent arbitral institutions in Brazil include the following.
In international arbitrations with a Brazilian nexus, foreign institutions such as the ICC (Paris), LCIA and SIAC are also commonly selected.
The duration of arbitral proceedings in Brazil varies depending on factors such as complexity, number of parties, the chosen institution and the procedural timetable. Arbitrations without expert evidence last, on average, around 21 months, while proceedings involving expert evidence average approximately 49 months.
Expedited procedures can significantly shorten this timeframe, with awards often rendered within six to nine months.
The main statute governing arbitration in Brazil is the Brazilian Arbitration Act (Law No 9,307/1996), inspired by the UNCITRAL Model Law and applicable to both domestic and international arbitration. The Act was substantially amended by Law No 13,129/2015, which expressly allowed arbitration involving the public administration, introduced tribunal-granted interim measures, partial awards and corporate arbitration clauses.
Brazil is a party to the New York Convention, the Panama Convention and the Mercosur Agreement on International Commercial Arbitration. The Civil Procedure Code provides supplementary rules on the recognition and enforcement of foreign arbitral awards.
Notably, Brazil is not a signatory to the ICSID Convention and does not participate in the traditional investment arbitration framework.
Brazilian courts play an important supportive role in arbitration.
Brazilian courts intervene in arbitration only in limited and well-defined circumstances, reflecting the pro-arbitration policy of the legal framework. Importantly, courts do not review the merits of arbitral awards.
The main form of judicial intervention is the annulment action, which must be brought within 90 days of notification of the award. The grounds for annulment are strictly limited to procedural irregularities, including:
Foreign Awards
For foreign arbitral awards, the STJ has jurisdiction to grant or refuse recognition based on the grounds set forth in the New York Convention.
Arbitral tribunals have broad authority to grant relief. They may issue declaratory, constitutive and condemnatory awards, including monetary damages, specific performance, contract termination and contractual penalties. The issuance of partial awards is expressly permitted.
Interim and Emergency Relief
Arbitral tribunals may grant interim and urgent measures, such as injunctions and precautionary relief.
No Restrictions
There are no express statutory restrictions on the types of interim relief a tribunal may grant, provided that the measures are necessary, proportionate, within the scope of the arbitration agreement and concern disposable rights. Coercive enforcement, such as contempt sanctions, may require judicial assistance.
Brazil offers several ADR methods beyond arbitration.
Once a lawsuit is filed, Brazilian courts must schedule a mandatory conciliation or mediation hearing before the defence is submitted. This hearing can only be waived if both parties expressly decline.
Non-attendance without justification may result in a fine of up to 2% of the dispute value. Where parties have contractually agreed to mediation as a condition precedent to arbitration, failure to comply may result in the claim being considered premature.
Engaging in ADR does not affect a party’s right to litigate or arbitrate. The mandatory court hearing is a procedural step, not a precondition to filing suit.
If ADR results in settlement, the agreement becomes an enforceable title through courts.
ADR in Brazil may take place at different stages of the dispute. Parties often attempt to negotiate voluntarily before formal proceedings are initiated. ADR may also occur after a judgment has been rendered. Given that enforcement proceedings in Brazil can be lengthy and costly, it is not uncommon for the parties – particularly the losing party – to negotiate a settlement at this stage in order to avoid prolonged and uncertain enforcement measures.
As to limitation periods, extrajudicial mediation suspends the running of the statute of limitations until its conclusion. This mechanism protects parties who seek an amicable resolution before initiating litigation or arbitration, ensuring that settlement efforts do not prejudice their rights.
Mediation is confidential by law. As a general rule, information disclosed during mediation cannot be used as evidence in court or arbitration, and mediators cannot be called as witnesses.
Court conciliation hearings are also confidential, and settlement discussions are conducted privately.
For private mediation, costs are typically shared equally between parties unless otherwise agreed. Generally, each party bears its own legal representation costs. If settlement is reached, cost allocation is typically addressed in the settlement agreement, depending on its terms.
Court-conducted conciliation and mediation through judicial centres are generally free of charge, making ADR accessible even for lower-value disputes.
Brazilian courts strongly support ADR as a means of addressing the country’s significant judicial backlog. Judges actively encourage settlement at the initial procedural hearings, and it is also common for appellate courts to ask the parties whether they wish to explore a settlement before an appeal is decided.
Courts readily homologate settlement agreements, granting them the same enforceability as court judgments.
Legal fees in Brazil consist of two components: contractual fees agreed between client and lawyer, and court-awarded fees payable by the losing party.
Contractual Fees
Clients and lawyers are free to negotiate fee arrangements. Common structures include fixed retainers, hourly rates, success fees or combinations thereof. While fees are freely agreed, they must comply with ethical standards set by the Brazilian Bar Association (OAB), including reasonableness and transparency. The OAB publishes minimum fee schedules at the state level, which are binding for ethical purposes and aim to prevent underpricing.
Court-Awarded Fees
Brazil follows a loser-pays system. The losing party must pay attorneys’ fees to the prevailing party. Under the Civil Procedure Code, these fees are set between 10% and 20% of the claim value, economic benefit or updated cause value. The fees are owed directly to the winning party’s lawyers – not to the client – as a vested right under Brazilian law.
Third-party litigation funding is available and growing in Brazil, though not specifically regulated by statute.
Contingency fee arrangements are available in Brazil and are regulated by the Brazilian Bar Association’s Code of Ethics and Discipline. These arrangements are particularly common in labour, consumer, personal injury and civil rights cases.
Under these arrangements, the lawyer receives a percentage of the recovery with no upfront payment from the client. The main rules governing contingency fees include: the fee must be agreed in writing; the percentage cannot be manifestly excessive or disproportionate to the work performed; the lawyer cannot acquire rights over the subject matter of the dispute; and the arrangement must not place the client at a disadvantage. The Bar Association may review fee arrangements that appear abusive or that compromise the client’s interests.
In commercial litigation and arbitration, pure contingency fees are less common. Instead, hybrid arrangements combining reduced retainers with success fees are prevalent, allowing for greater flexibility while maintaining ethical compliance.
Insurance coverage is available in Brazil for court litigation, arbitration and ADR. Coverage depends primarily on the terms agreed in the insurance policy.
In litigation, the losing party pays court costs and attorneys’ fees (10-20% of the judgment value) to the prevailing party.
Cost allocation depends primarily on the outcome of the case and on who is the prevailing party. The losing party pays costs and attorneys’ fees to the winning party.
The percentage of success or failure in the case is also taken into consideration. If a party wins some claims but loses others, costs may be apportioned according to the degree of success achieved by each party.
If both parties prevail and lose on different aspects of the dispute, costs are typically divided between them proportionally, reflecting the extent to which each party succeeded in the litigation.
The types of interim relief available from the courts for ADR proceedings are the same as those applicable to litigation cases, as described in 2.6 Interim Relief.
Brazilian courts routinely grant interim relief in support of arbitration and other forms of ADR. Before an arbitral tribunal is constituted, parties may seek interim measures directly from state courts to preserve rights or prevent irreparable harm.
Once the arbitral tribunal is constituted, it assumes primary jurisdiction over interim relief. Courts then continue to play a supportive role, assisting mainly with the enforcement of tribunal-ordered measures when coercive powers are required.
In the context of mediation and other ADR mechanisms, courts may also grant interim relief to safeguard the parties’ rights while negotiations are ongoing.
Interim relief may be sought at various stages.
Brazilian law does not have a general security for costs requirement. However, any plaintiff who resides outside Brazil must provide security for the defendant’s costs and fees, unless they own real estate in Brazil sufficient to cover such costs.
This requirement is waived when there is an applicable international treaty, in enforcement proceedings or in counterclaims.
Additionally, courts may require security or order asset freezes in other situations. If there is evidence of asset dissipation risk, the defendant may request protective measures to ensure future costs recovery. Courts may also require the plaintiff to post security as a condition for granting interim relief, particularly injunctions that may cause significant harm to the defendant if later reversed.
Interim injunctions are available for parties in Brazil. They are court orders requiring a party to do something (mandatory injunctions) or to refrain from doing something (prohibitory injunctions). The applicant must demonstrate a likelihood of success on the merits and a risk of serious or irreversible harm if the order is not granted.
Common cases where interim injunctions are sought include: stopping the infringement of intellectual property rights, stopping defamatory publications or unfair competition practices, preventing the transfer or disposal of disputed assets and requiring a party to continue supplying goods or services under an existing contract.
Courts may render early judgment on the merits when: (i) the dispute involves only legal questions with no disputed facts; or (ii) all evidence is documentary and no further proof is needed. Early judgment is regularly used for straightforward claims involving undisputed payment obligations, documented contract breaches or matters following binding precedent.
The main mechanisms are the following.
Brazilian class actions follow a representative model: affected individuals do not file or join the action themselves. Instead, authorised entities act on behalf of all class members.
Standing is limited to:
For popular actions, any Brazilian citizen has individual standing to challenge unlawful government acts that harm public assets.
Brazilian collective actions allow for broad relief, including injunctive orders to stop unlawful conduct, monetary compensation or restitution, environmental remediation and declaratory relief (such as invalidation of abusive contractual clauses).
Damages calculation depends on the type of collective right involved:
Brazil follows the principle of full compensation, covering actual losses and lost profits, and allows moral damages assessed on proportionality grounds.
Collective actions seeking to protect diffuse or collective rights are generally not compatible with arbitration in Brazil. The fundamental reason lies in the nature of the rights involved: arbitration requires that parties have the power to freely dispose of the rights in dispute, whereas diffuse rights belong to an indeterminate group of people and cannot be waived or transacted by any individual or entity.
Consumer claims involving large numbers of individuals with similar grievances also generally remain outside arbitration. Consumer protection legislation treats the relationship between consumers and suppliers as inherently unequal, and arbitration clauses in consumer contracts are subject to strict scrutiny. However, there is no specific legal prohibition on collective arbitration in Brazil, and it is theoretically permitted for certain types of disputes. Notable cases have emerged involving investor harm claims, where collective arbitration mechanisms were discussed as a potential avenue for resolving mass investor disputes.
Repetitive Claims Mechanism
Brazil has developed a robust system for managing mass litigation through binding precedent mechanisms. The most significant trend is the increased use of the Incident of Resolution of Repetitive Demands and repetitive appeal procedures in the Superior Courts. These mechanisms allow courts to consolidate thousands of individual cases involving the same legal question into a single binding ruling. It has been widely used in banking, insurance and consumer disputes.
Digital and Data Protection Claims
Consumer collective actions against technology companies, banks and telecommunications providers have increased substantially, particularly regarding data breaches, algorithmic decision-making and digital platform liability. With the Brazilian data protection law in force, collective actions based on data protection violations are expected to become more frequent.
Brazil does not have broad discovery comparable to common law jurisdictions. There is no general obligation to disclose documents that may be relevant to the dispute.
General Approach
Parties must submit all documentary evidence they intend to rely upon together with their initial pleadings. The claimant attaches documents to the initial petition, and the defendant does the same with the defence. After these initial submissions, new documents may only be introduced under limited circumstances, such as when responding to arguments raised by the opposing party.
Requesting Documents from the Opposing Party
Although there is no automatic disclosure duty, a party may request specific documents from the opposing party or from third parties. The requesting party must identify the document with reasonable precision and explain why it is relevant to the dispute. The court will not accept a refusal to produce a document when the party has a legal obligation to disclose it; the party referred to the document during the proceedings to support its own case; or the document is common to both parties.
If a party refuses to produce a court-ordered document without valid justification, the court may presume that the facts the requesting party intended to prove through that document are true.
Brazil does not have a privilege regime equivalent to common law systems, but it provides strong protections for confidential communications based on statutory duties of professional secrecy.
Lawyer-Client Communications
Under the Statute of the Brazilian Bar, all communications related to legal advice and representation – including opinions, strategy and materials prepared in connection with actual or anticipated litigation – are confidential. In general, such information cannot be compelled by court order, and lawyers may refuse to testify about it.
Other Professionals
Similar confidentiality obligations apply to other professions, including doctors and healthcare professionals, accountants, psychologists and therapists, journalists (with respect to sources) and members of the clergy. These protections may justify refusal to disclose information, although courts may exceptionally order disclosure where there is a compelling and specific need.
Waiver of Privilege
Privilege may be waived if the holder voluntarily discloses the information, consents to its disclosure, or relies on the confidential material to support claims or defences. Assertions of confidentiality must be specific and justified; broad or unsupported claims are generally not upheld.
Brazilian law allows parties to withhold evidence on confidentiality grounds in limited circumstances. A party may be excused from producing a document if disclosure would cause serious harm to the party or close relatives, or if it contains trade secrets or professional confidential information. When confidentiality is claimed, courts balance the need for disclosure against the harm it may cause. Rather than allowing complete withholding, courts often order restricted access: the document is disclosed to the court and opposing counsel under a confidentiality undertaking, but not made public.
Confidentiality protection may be overridden when the document is essential to the case and cannot be replaced by other evidence, when the party claiming confidentiality relies on the same document for its own case, or when the court determines that the interests of justice outweigh confidentiality concerns.
In court proceedings, witnesses testify orally at a hearing before the judge, which occurs after the parties have submitted their initial pleadings and the judge has determined that oral evidence is necessary.
Brazil does not have a pre-trial deposition procedure comparable to the US model. There is no discovery phase allowing parties to depose witnesses before trial.
Written witness statements are not standard practice in Brazilian litigation. Parties identify the witnesses they intend to call, but statements or affidavits submitted in advance carry little evidentiary weight. As a rule, the judge assesses credibility based on live testimony, particularly because the judge may directly question witnesses and exercise control over the relevance and scope of cross-examination.
Examination Procedure
At the hearing, witnesses are examined by the lawyers for all parties and by the judge. The sequence typically begins with questions from the party that called the witness, followed by questions from opposing counsel. The judge may intervene at any time to ask clarifying questions or to control the scope of examination.
Expert evidence is widely used in Brazilian proceedings, when disputed facts require specialised technical or scientific knowledge that falls outside the judge’s expertise.
The judge appoints a neutral expert from an approved registry. The court-appointed expert must act with independence and impartiality. Each party may then appoint a technical assistant to review the expert’s methodology, challenge findings and submit a separate opinion. While the court expert’s report carries significant weight, the judge is not bound by its conclusions and may rely on other evidence.
Foreign judgments are not directly enforceable in Brazil. They must first be recognised by the STJ. Its review is formal and procedural only – the merits of the case are not reconsidered. Once recognised, enforcement follows the standard judgment enforcement procedure before first instance courts.
Requirements for Recognition
The STJ will homologate a foreign judgment provided it meets the following conditions:
International Treaties
The recognition of a foreign judgment may be waived or facilitated when there is an international treaty in force between Brazil and the foreign country.
Domestic Awards
Domestic arbitral awards have the same legal effect as court judgments under the Brazilian Arbitration Act (Law No 9,307/1996). They constitute a judicial enforcement title and do not require recognition or homologation. Enforcement proceeds directly before state courts under the Code of Civil Procedure, with a 15‑day period for voluntary compliance, after which enforcement measures may be imposed.
Foreign Arbitral Awards
These awards must be recognised (homologated) by the STJ before enforcement in Brazil, pursuant to the Arbitration Act and the New York Convention. The STJ reviews only formal and public-policy requirements, not the merits of the award.
Please see 2.4 Stages of Court Proceedings.
A typical civil lawsuit takes approximately three years to reach a final decision on the merits. Appeals to superior courts may add another one to tow years. After obtaining a favourable judgment, enforcement proceedings may take an average of five to six years to locate assets and complete the necessary procedural formalities.
Foreign Judgments
A party may oppose STJ homologation of a foreign judgment based on the following grounds:
Domestic Arbitral Awards
Domestic awards may be challenged under Article 32 of the Arbitration Act. The challenge must be filed within 90 days of receiving the award. Grounds include:
Brazil does not currently have specific legislation regulating the use of artificial intelligence in dispute resolution.
The National Council of Justice (CNJ) is the administrative body responsible for overseeing and regulating the Brazilian judiciary. The CNJ has issued two main instruments addressing AI in the judicial context.
The resolutions function more as best-practice recommendations than as binding legal rules, but courts are expected to follow them as part of their administrative duties.
Brazil has experienced a significant impact of artificial intelligence in the field of dispute resolution. This impact manifests itself on two main fronts: the growing use of AI tools by lawyers and law firms, and the increasingly broad adoption of these technologies by the judiciary itself.
On the side of legal professionals, the use of artificial intelligence has grown substantially in recent years. Lawyers have turned to AI-based tools for tasks ranging from case law research and analysis of large volumes of documents to drafting and formulating litigation strategies. This adoption has enabled more efficient and data-driven practice, changing the dynamics of litigation in the country.
Within the courts, the transformation is equally significant.
The Brazilian judiciary has consistently invested in the digitisation of proceedings and the incorporation of artificial intelligence solutions to address one of its greatest challenges: the extraordinary volume of judicial demands. Superior courts, such as the STF and the STJ, use AI systems to classify cases and identify repetitive claims, enabling faster and more uniform treatment of issues that recur in thousands of actions. Furthermore, AI tools are already employed for drafting initial versions of judicial decisions, always subject to review and approval by the responsible judges. The result is a dispute resolution system that is progressively becoming more organised, agile and capable of absorbing the high workload that characterises Brazilian litigation.
Looking to the future, the trend is toward a deeper integration between artificial intelligence and judicial activity. In a brief retrospective, the Brazilian judiciary has already followed a significant path: it moved from the digitisation of case files and the implementation of electronic proceedings to the adoption of automated triage systems, AI-based subject-matter classification, and assistance in drafting decisions in less complex cases. This trajectory points to a scenario in which the courts will become even more efficient at filtering and adjudicating standardised cases, where the facts and legal issues follow recognisable patterns.
This evolution, however, brings with it an important challenge. As artificial intelligence becomes established as a tool for handling repetitive and standardised cases, the question arises as to how the system will deal with complex litigation – those cases that, by their very nature, do not fit into predefined models. Disputes involving intricate factual issues, innovative legal theories, or multiple layers of regulatory complexity require an analysis that goes beyond what automated patterns are able to capture. The challenge facing both lawyers and the courts is to ensure that the increased standardisation enabled by AI does not compromise the quality of analysis and adjudication in cases that demand a more individualised and in-depth examination. Finding this balance will likely be one of the central issues in the evolution of the Brazilian justice system in the coming years.
Rua José Gonçalves de Oliveira
No 116 5º andar
Itaim Bibi
São Paulo, SP
Brazil
01453-050
+55 11 3150 7000
bps.mkt@machadomeyer.com.br www.machadomeyer.com.br/en
Artificial Intelligence and Dispute Resolution in Brazil: Where Algorithmic Efficiency Meets Strategic Advocacy
Brazil’s dispute resolution landscape is being reshaped by a tension that jurisdictions worldwide are grappling with but none has yet resolved: the growing reliance on artificial intelligence (AI) to manage an unmanageable volume of disputes, and the simultaneous acknowledgement that the most consequential cases – whether before the superior courts or in high-stakes arbitrations – still demand the kind of strategic, human judgment that no algorithm can replicate. Nowhere is this tension more visible than at the top of the Brazilian judiciary. The Supreme Court (STF) exercises constitutional review; the Superior Court of Justice (STJ) standardises the interpretation of federal legislation. Neither was designed as the entry point of the justice system, but as its selective apex, open only to genuinely novel legal questions, interpretative divergencies, binding precedents or issues of constitutional relevance, where facts are not discussed and evidence is not re-examined. It is this paradigmatic function that makes access inherently restrictive, and that makes so stark the contradiction between the volume that actually reaches these courts – hundreds of thousands of cases per year – and the human capacity to process it. It is here that AI has found fertile ground to consolidate itself as a central component of judicial activity.
According to the STJ Presidency Report (2024–2025), the Court’s 33 justices received nearly 500,000 cases to decide in 2025, a caseload without parallel among consolidated democracies. The scale of the challenge is best appreciated through comparison. Brazil has roughly 215 million inhabitants. In France, the Court of Cassation and the Council of State – two apex courts with distinct jurisdictions – together count approximately 200 members and decide between 10,000 and 20,000 cases per year each. In India, with 1.4 billion people and more than six times Brazil’s population, the Supreme Court, composed of 34 justices, issues around 1,000 reported judgments annually; a fraction of the volume that lands on the desks of STJ’s justices. These comparisons are necessarily imperfect – the institutional design, procedural rules and filtering mechanisms vary widely between jurisdictions – but they serve to illustrate the extraordinary dimension of Brazil’s caseload problem, especially in the upper levels of the judiciary. Faced with this reality, STJ invested USD52 million (BRL297.4 million) in new technology solutions in 2025 and placed generative AI at the centre of its response to congestion. Today, before any justice becomes aware of a case, AI has already played a role in the preliminary filtering of admissibility, a development that is reshaping the way litigation before the superior courts is conducted.
This article traces the arc of that transformation across Brazil’s dispute resolution landscape. It begins with the superior courts, where AI has moved from classifying cases to drafting decisions, and where automated admissibility screening has fundamentally altered the conditions of access to the highest judicial instances. It then broadens the lens to the legal profession and to international arbitration, moving to examine how practitioners, arbitral institutions and corporate clients are navigating an environment in which standardised processes co-exist with disputes that resist standardisation. The central question throughout is not whether AI belongs in the system – it already does – but whether the system is preserving sufficient space for the specialised, strategic advocacy that its most complex cases demand.
AI in Brazil’s superior courts: from classification to decision-making
AI use in the superior courts began years ago with the automation of administrative and classificatory tasks, mostly of repetitive, high-volume work that had until then been performed individually by each court staff member, with no meaningful gain in scale. The productivity leap was immediate and significant.
These tools could sort, group and flag, but they could not “think”, write or reason. In December 2024, STF inaugurated the MARIA platform (AI-Assisted Writing Support Module), its first generative AI tool, and that ceiling was decisively broken. MARIA produces summaries of votes, drafts headnotes and reports for appeals, and performs the initial analysis of constitutional complaints. With MARIA, AI at STF became a tool of direct support for analysis and decision drafting.
In February 2025, STJ followed with STJ Logos, a generative AI engine developed entirely in-house. The system has two core functions: generating decision reports and analysing the admissibility of appeals, the single highest-volume class of matters before STJ. For both tasks, STJ Logos produces standardised texts based on the case record, promoting greater efficiency and speed in the drafting process. The justices then review and validate the output, marking a decisive shift from AI as a tool of organisation to AI as a participant in the decision-making process itself.
The results were measurable. According to the STJ Presidency Report, chambers that used STJ Logos to draft at least 25% of their decisions recorded a roughly 30% increase in output, averaging 8,700 documents per month in the system’s first five months of operation, from February to August 2025.
It was in this context that, in March 2026, the National Council of Justice (CNJ) – which oversees the Brazilian judiciary through resolutions and recommendations, including its productivity goals – launched Promptus, a national repository of ready-made prompts for generative AI, made available to all courts in the country. The initiative signals that AI is becoming easier, more accessible and more standardised across the judicial system, and it raises, in turn, a set of questions that the legal profession on the other side of the courtroom is only beginning to grapple with.
On the lawyers’ side: AI as the new baseline
Brazilian lawyers have responded with equally surprising speed. According to the Report on the Impact of Generative AI on Law, published by the São Paulo Bar Association in 2026 (the “OAB-SP Report”), 77% of lawyers already use AI regularly in their professional activities, a jump of 22 percentage points from the previous year. In 12 months, AI became part of lawyers’ routine.
The OAB-SP Report, which compiled responses from professionals across different areas of law throughout the country and received support from Bar associations in multiple states, presents further data on the depth of this adoption. According to the survey, 76% of lawyers already use AI in drafting procedural documents, the core of daily legal work. The figure drops only slightly for legal research (59%), the drafting of opinions and memoranda (58%), and contract analysis and review (56%), suggesting that AI has penetrated virtually every dimension of legal practice. Perhaps most notably, it is not merely that lawyers are working faster, but they believe they are working better. 91% of professionals who use AI report improvements in the technical quality of their work. Whether that perception reflects a genuine improvement in quality or a more subtle effect of fluency and confidence that AI-generated text tends to project is a question the data alone cannot answer.
What the data confirms is that AI has moved well beyond peripheral experimentation in Brazil. This is a shift consistent with a broader global phenomenon: according to the American Bar Association’s Legal Technology Survey Report 2024, AI adoption by US law firms nearly tripled in a single year, with significant growth among solo practitioners and small firms, indicating that the technology has ceased to be the prerogative of large firms and has become part of the routine of professionals of the most varied profiles and structures. Accessible tools – many of them free or low-cost – have made it possible for any lawyer, regardless of the size of their firm, to incorporate the technology into their daily work.
The emerging standard: technological competence as professional duty
The rapid adoption of AI on both sides of the courtroom – by judges drafting decisions and lawyers preparing filings – creates a new and largely unchartered dimension of professional responsibility. When 76% of lawyers use AI to draft procedural documents and courts employ generative AI to screen and draft rulings, the question is no longer whether practitioners should engage with the technology but whether failure to do so competently constitutes a professional shortcoming.
This shift echoes a debate that has already matured in other jurisdictions. In the United States, over 80% of state bars have amended their rules of professional conduct to include a duty of technological competence, requiring lawyers to remain informed about the benefits and risks of technology relevant to their practice. In Brazil, no equivalent formal obligation exists yet. The OAB-SP Report, however, reveals that over 60% of lawyers who do not use AI cite lack of knowledge as the primary barrier, not cost nor scepticism. The gap, in other words, is not one of willingness but of training.
For clients with high-stakes disputes before Brazil’s Superior Courts, this emerging competence divide carries tangible consequences. A lawyer who understands the environment in which they litigate – including how automated screening operates – is better positioned to craft filings that are not only substantively sound but also structurally visible to the system that will first process them. A lawyer who ignores this dimension of the proceedings may produce arguments that are legally correct but that fail to engage the criteria the automated filter is designed to detect. Whether practitioners should be expected to optimise their submissions for the machine, rather than solely for the law, remains an open and uncomfortable question, but as automated admissibility screening becomes the effective gateway to the STJ, it is a question that the profession cannot afford to leave unanswered.
Hallucinations, sanctions and a regulatory framework still taking shape
The adoption of AI by courts and lawyers in Brazil has moved far faster than regulation and faster than collective understanding of what the technology does. As in the rest of the world, users interact with generative AI through a clean interface that masks extraordinary complexity underneath. The output is fluent, well-structured and apparently authoritative – it cites cases, invokes statutes, builds arguments with logical coherence. That very fluency is what creates a sense of reliability that has not been entirely earned yet.
The regulatory landscape
Regulation has struggled to keep pace with adoption, but a framework is gradually emerging. In the absence of comprehensive legislation, the CNJ has taken the lead in setting ground rules. Its most significant intervention came in March 2025 with Resolution No 615, which replaced an earlier and more general framework (Resolution No 332/2020) and addressed generative AI specifically. The core message of the new resolution is clear: AI may assist but must not replace the judge. Human oversight is required at every stage of the decision-making process, the autonomous use of AI to issue judicial decisions is prohibited, and each system deployed must be classified by risk level and remain auditable and transparent. On the legislative front, Bill No 2,338/2023 proposes a comprehensive Legal Framework for AI in Brazil but contains no specific provisions for the judiciary, leaving sectoral regulation to the courts’ own rulemaking and resulting, for now, in a patchwork where each court adopts its own policies with visible risks of inconsistency.
When AI gets it wrong
The pattern first came to international attention through Mata v Avianca (2023), in which lawyers in the United States submitted AI-generated briefs containing entirely fictitious judicial precedents and were sanctioned by the court. Brazil was not long in producing its own versions of the same episode.
In ruling on Appeal 78,890/Bahia, STF rejected a petition drafted with AI assistance that contained false precedents and incorrect content from binding precedent summaries. The conduct was classified as procedural bad faith, the party was ordered to pay double costs, and the court ordered notification to the Federal Bar Council for appropriate disciplinary proceedings against the lawyer.
The Superior Labour Court (TST) has imposed fines for bad-faith litigation involving AI-generated fictitious precedents, and the severity of sanctions has escalated. Courts have ordered several referrals to the Federal Prosecution Service for assessment of potential criminal liability (for example, case No 0000284-92.2024.5.06.0351) – signalling that the judiciary is already seeking possible frameworks in existing criminal law, even in the absence of a specific offence for fraudulent use of AI in court filings.
What emerges is a grey zone. The lawyer practising before the superior courts today operates on three fronts simultaneously: competing with firms that already use AI to produce more, faster and at lower cost; litigating before a judiciary that has automated the critical stages of the appellate path; and doing so in an environment where the rules governing the tool itself are still being written.
The limits of automation: complex cases that do not fit neatly into boxes
The congestion in the higher courts is an indisputable problem and one that goes beyond mere administrative overload. It directly affects access to justice. When thousands of cases are piling up, the time available for each one shrinks, the adjudicator’s capacity to delve deeply into the matter diminishes and the quality of the judicial function is inevitably compromised. Delay harms everything: careful examination, reflection and substantive adversarial debate. It is in this context that the strength of AI becomes undeniable because it delivers speed that no human team could replicate at the same scale.
According to the STJ Presidency Report, the Advisory Office for Admissibility, Repetitive Appeals, and Relevance (ARP) – a unit created to prevent manifestly inadmissible appeals from even reaching the justices’ chambers – has blocked more than 120,000 cases since August 2024. In the Second Section, for example, each justice was spared an average of 6,722 cases, equivalent to roughly 83% of the total (8,059).
This is a number that, read from one perspective, is reassuring. The court is not and does not have to be open to every appeal, and congestion is being contained. Without this mechanism, the workload would simply be unworkable. Read from another perspective, however, the same figure is troubling. Of the inadmissibility decisions issued by the ARP, 95.44% are upheld by the Panels. Fewer than 4% of decisions are reversed. In a system where access to the STJ is already, by definition, exceptional – reserved for questions of federal law and filtered through rigorous admissibility requirements – this means that the screening decision is, in most cases, the final decision. There is no effective second chance. The appeal that does not pass through the AI filter will not be judged on the merits; it will simply be terminated. The gateway has, in practice, become the judgment itself and the AI operating at that gateway does not forgive imprecisions that a human rapporteur, in another context, might overlook.
But what about when the dispute does not fit neatly into a box? Consider a case in which a party raises a novel constitutional theory, for example, the intersection of data protection rights and freedom of expression in the context of AI-generated content, where no settled precedent exists and the legal framework itself is in flux. Or a complex commercial dispute turning on the interpretation of a hybrid contractual arrangement that spans multiple regulatory regimes, where the admissibility of the special appeal depends on demonstrating a conflict of interpretation among appellate courts, a conflict that may be emerging but has not yet crystallised into a cleanly identifiable split. These are not hypothetical scenarios; they are the types of cases that regularly arise in sophisticated litigation. The very logic of AI, based on patterns extracted from historical data, finds its limits precisely where strategic litigation begins: in matters that require the construction of new legal arguments rather than the application of existing ones, and where the strength of the case lies not in its conformity to established patterns but in its capacity to persuade the court to chart a new course.
AI and arbitration: a parallel transformation
If the cases that most resist algorithmic treatment are those demanding original argumentation, bespoke strategy and deep subject-matter expertise, then international arbitration is, by vocation, the terrain where the limits of AI should be most acutely felt. Arbitration exists precisely because certain disputes require a procedural framework that standard litigation cannot offer. In Brazil, this is not a niche market: 376 new arbitrations were filed in 2024, an 18% increase over the previous year, involving BRL76 billion in dispute. Yet for all its scale and sophistication, the Brazilian arbitral market is only beginning to reckon with AI in the conduct of proceedings. Institutions have invested in digital infrastructure – CAM-B3 was among the first to adopt a fully digital case management platform – but the adoption of AI in the strict sense remains nascent. The most significant initiative to date came from the CAM-CCBC, which in October 2025 launched, in partnership with Jus Mundi, AI-generated summaries of arbitral awards, reviewed by specialised professionals before publication, the first application of AI for transparency in Brazilian arbitration. These initiatives, however, remain focused on institutional transparency rather than on the use of AI within proceedings themselves.
As the Queen Mary University of London 2025 International Arbitration Survey documented, AI adoption across the arbitral ecosystem has accelerated to the point where institutional responses have become unavoidable. International bodies have moved accordingly: the CIArb published detailed guidelines, the SCC issued formal guidance in October 2024, the VIAC followed in April 2025, and the ICC established a dedicated Task Force in 2025. Among Brazilian institutions, however, only the CAM-CCBC has taken a formal step issuing guidance that alerts participants to risks of imprecision, bias and confidentiality breaches inherent in third-party AI tools, and encouraging parties to include specific clauses on AI use in their Terms of Arbitration.
These gaps carry legal consequences. Under Article 32, VIII, of Law No 9,307/1996, an arbitral award is null if rendered in violation of due process, equality of the parties or the arbitrator’s impartiality. If AI materially influences the tribunal’s deliberative process without proper disclosure, the resulting award may be vulnerable to annulment. Arbitration in Brazil, moreover, does not operate in isolation from the judicial system. Foreign awards require recognition by the STJ; interim measures are sought before state courts; and annulment actions are processed by appellate tribunals. These proceedings are already subject to the same automated screening described above, meaning that the convergence between judicial automation and arbitral practice is a reality.
Practical takeaways for corporate clients
What is taking shape across Brazil’s dispute resolution landscape is a redefinition of the practitioner’s role. AI absorbs what is repetitive, voluminous and standardisable, and in doing so it raises the baseline of what is expected from every participant in the system. For law firms and corporate clients navigating disputes in Brazil, the convergence of these trends yields several practical considerations.
First, the automation of admissibility screening at the STJ means that the quality and precision of appellate filings have never been more consequential. In a system where automated screening is, for practical purposes, dispositive, a poorly crafted special appeal is almost certain to be terminated without reaching a justice. Clients should expect their counsel to understand the full environment in which their case will be processed.
Second, the speed at which AI has been integrated into the judiciary alters the dynamics of case timelines. Proceedings that once languished for years in administrative backlogs are now processed (and potentially dismissed) in a fraction of the time. Appellate strategy must account for this acceleration, for the window for interventions and strategic repositioning has narrowed considerably.
Third, the choice of legal representation in complex disputes carries heightened significance. When standardised cases are efficiently processed by AI, the disputes that reach the merits are the ones that demand original argumentation, deep subject-matter expertise and experience before the specific court or tribunal. The growing distance between routine legal work (which AI can perform well) and high-complexity strategic advocacy (which it cannot) means that the selection of counsel is increasingly a decision about whether the dispute will receive the individualised attention required.
Finally, in arbitration and cross-border disputes, where proceedings are bespoke and tribunal discretion is broad, the integration of AI into case preparation is already a competitive advantage, but only when paired with counsel who can translate technological efficiency into persuasive advocacy.
The Brazilian experience offers a revealing case study for an issue that is global in scope. A judiciary that has embraced AI with rare speed and ambition; a legal profession that has adopted it faster than most would have predicted; and a regulatory framework that is still catching up. In this environment, the practitioners who will stand out are those who understand most clearly where the utility of AI ends and where the irreducibly human work of strategic advocacy begins.
Rua José Gonçalves de Oliveira
No 116 5º andar
Itaim Bibi
São Paulo, SP
Brazil
01453-050
+55 11 3150 7000
bps.mkt@machadomeyer.com.br www.machadomeyer.com.br/en