The international arbitration (IA) is facing many challenges. The number of cases continues to break historical records, putting pressure on the efficiency of case handling. Meanwhile, the QMUL Survey has rated expensive fees as a major disadvantage for international arbitration for two times. Thus, AI’s advantages in efficiency and cost are attractive, and the QMUL 2021 Survey showed that AI usage in IA was constantly increasing. However, comprehensive and widely accepted AI legal regulations are virtually non-existent. This study identifies this legal gap and reverts to Professor Schmitthoff’s theory: Arbitration has a contractual and judicial element. Taking a perspective from the traditional contract law and judicial theory, this research examines the new phenomenon of AI in IA. From a contractual perspective, the permissibility of using AI in arbitration agreement falls within the the freedom of contract. However, from a judicial perspective, issues such as the black box effect, algorithmic discrimination, and data security will directly impact the fairness and credibility of arbitration, potentially even harming public interests. In certain situations, identification flaws in the AI arbitration becomes crucial. Thus, this study aims to explore theoretically logical yet practically feasible legal framework for AI-enhanced international arbitration. This research will employ comparative methodology to investigate contract law and judicial theory while utilizing empirical methodology to explore AI regulation. In conclusion, the global AI wave brings both opportunities and challenges. Before venturing too far, it is essential to carefully review and cautiously formulate legal responses.