AI Courts Will Replace Lawyers and Judges in Business Lawsuits with Brian H. Potts and Kenny McLaren
Wed Feb 04 2026
In this episode of AI for Business Owners, host Jeff Torello sits down with Brian H. Potts, veteran litigator and startup founder, and Kenny McLaren, CTO and systems designer, to explore how they've created a revolutionary AI product: Arbitrus, a private court system overseen by an AI judge. Designed to resolve civil disputes faster and more affordably than traditional courts or arbitration, Arbitrus challenges centuries of legal precedent by using specialized AI to render legally binding decisions.
Brian and Kenny share the journey from a casual coffee meeting to a functional legal tech product that's already handling real-world cases. They discuss the tech stack, the philosophy behind AI in law, the hallucination problem, and why human lawyers and judges might soon have serious competition from software.
This episode is essential listening for business owners, legal professionals, and anyone curious about how AI can disrupt deeply entrenched systems.
Key Takeaways:
From Courtrooms to Code: Why the traditional legal system doesn't work for most business disputes, and how arbitrage changes that.
Building the AI Judge: The technical and legal challenges of building a decision-making system that's accurate, enforceable, and scalable.
Hallucination-Free AI: How Kenny's engineering team tackled the accuracy problem that plagues most AI systems today.
Contractual Simplicity, Legal Power: How adding a simple clause in your contracts lets you access AI-based arbitration that's binding under U.S. law.
Why Government Wants In: Unexpected traction with state courts and healthcare systems shows just how broken current systems are, and how AI could help.
Noteworthy Quotes:
"You let AI decide if you live or die at 75 mph in a Tesla, but you're not ready to let it decide your contract dispute?" – Brian Potts
"We don't let people just ask Arbitrus anything. That's how you get hallucinations. We designed it to only do one thing—and do it correctly." – Kenny McLaren
"Law is language—and language is exactly what these models are built to interpret better than most humans." – Jeff Torello
"You can't sell AI tools to law firms. They have no incentive to be more efficient. But you can sell a better system to the people who need justice." – Brian Potts
"The best way to eliminate hallucinations? Don't let the LLM make decisions. Use it only where it's useful, and verify everything." – Kenny McLaren
Key Timestamps:
[00:00] – Introduction and welcome to Brian Potts & Kenny McLaren
[02:12] – Brian introduces Arbitrus: AI as a private court
[04:35] – Kenny's engineering background and how a coffee meeting launched a company
[06:46] – What Arbitrus does: real civil disputes, real outcomes, all AI
[09:36] – Where AI delivers in legal tech—and where it's still hype
[18:45] – How to use Arbitrus: add a clause, resolve disputes in 30 days
[27:09] – Why government and healthcare systems are now interested
[35:51] – Hallucination solved: Why Arbitrus never makes up fake case law
[49:50] – Final thoughts, contact details, and how to try Arbitrus
FOLLOW OUR GUESTS:
Brian H. Potts LinkedIn: https://www.linkedin.com/in/brian-h-potts-26914923/
Kenny McLaren LinkedIn: https://www.linkedin.com/in/kenny-mclaren/
Arbitrus Website: https://www.arbitrus.ai/
FOLLOW OUR HOST JEFF TORELLO ON:
LinkedIn: https://www.linkedin.com/in/jtorello/
Website: https://sinjun.ai/
FOLLOW SINJUN AI ON:
LinkedIn: https://www.linkedin.com/company/sinjunai/
Website: https://sinjun.ai/
X (Twitter): https://x.com/sinjunai
Instagram: https://www.instagram.com/sinjun.ai/
Facebook: https://www.facebook.com/Sinjun-AI/
YouTube: https://www.youtube.com/@SinjunAI
FOLLOW AI FOR BUSINESS OWNERS PODCAST ON:
Spotify: https://open.spotify.com/show/3yi0lfb6ZtSuqRvKh6a2e1?si=88f9e649d1f546c8
YouTube: https://www.youtube.com/@AIforBizOwners
Apple Podcast: https://podcasts.apple.com/gb/podcast/ai-for-business-owners/id1823255627
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In this episode of AI for Business Owners, host Jeff Torello sits down with Brian H. Potts, veteran litigator and startup founder, and Kenny McLaren, CTO and systems designer, to explore how they've created a revolutionary AI product: Arbitrus, a private court system overseen by an AI judge. Designed to resolve civil disputes faster and more affordably than traditional courts or arbitration, Arbitrus challenges centuries of legal precedent by using specialized AI to render legally binding decisions. Brian and Kenny share the journey from a casual coffee meeting to a functional legal tech product that's already handling real-world cases. They discuss the tech stack, the philosophy behind AI in law, the hallucination problem, and why human lawyers and judges might soon have serious competition from software. This episode is essential listening for business owners, legal professionals, and anyone curious about how AI can disrupt deeply entrenched systems. Key Takeaways: From Courtrooms to Code: Why the traditional legal system doesn't work for most business disputes, and how arbitrage changes that. Building the AI Judge: The technical and legal challenges of building a decision-making system that's accurate, enforceable, and scalable. Hallucination-Free AI: How Kenny's engineering team tackled the accuracy problem that plagues most AI systems today. Contractual Simplicity, Legal Power: How adding a simple clause in your contracts lets you access AI-based arbitration that's binding under U.S. law. Why Government Wants In: Unexpected traction with state courts and healthcare systems shows just how broken current systems are, and how AI could help. Noteworthy Quotes: "You let AI decide if you live or die at 75 mph in a Tesla, but you're not ready to let it decide your contract dispute?" – Brian Potts "We don't let people just ask Arbitrus anything. That's how you get hallucinations. We designed it to only do one thing—and do it correctly." – Kenny McLaren "Law is language—and language is exactly what these models are built to interpret better than most humans." – Jeff Torello "You can't sell AI tools to law firms. They have no incentive to be more efficient. But you can sell a better system to the people who need justice." – Brian Potts "The best way to eliminate hallucinations? Don't let the LLM make decisions. Use it only where it's useful, and verify everything." – Kenny McLaren Key Timestamps: [00:00] – Introduction and welcome to Brian Potts & Kenny McLaren [02:12] – Brian introduces Arbitrus: AI as a private court [04:35] – Kenny's engineering background and how a coffee meeting launched a company [06:46] – What Arbitrus does: real civil disputes, real outcomes, all AI [09:36] – Where AI delivers in legal tech—and where it's still hype [18:45] – How to use Arbitrus: add a clause, resolve disputes in 30 days [27:09] – Why government and healthcare systems are now interested [35:51] – Hallucination solved: Why Arbitrus never makes up fake case law [49:50] – Final thoughts, contact details, and how to try Arbitrus FOLLOW OUR GUESTS: Brian H. Potts LinkedIn: https://www.linkedin.com/in/brian-h-potts-26914923/ Kenny McLaren LinkedIn: https://www.linkedin.com/in/kenny-mclaren/ Arbitrus Website: https://www.arbitrus.ai/ FOLLOW OUR HOST JEFF TORELLO ON: LinkedIn: https://www.linkedin.com/in/jtorello/ Website: https://sinjun.ai/ FOLLOW SINJUN AI ON: LinkedIn: https://www.linkedin.com/company/sinjunai/ Website: https://sinjun.ai/ X (Twitter): https://x.com/sinjunai Instagram: https://www.instagram.com/sinjun.ai/ Facebook: https://www.facebook.com/Sinjun-AI/ YouTube: https://www.youtube.com/@SinjunAI FOLLOW AI FOR BUSINESS OWNERS PODCAST ON: Spotify: https://open.spotify.com/show/3yi0lfb6ZtSuqRvKh6a2e1?si=88f9e649d1f546c8 YouTube: https://www.youtube.com/@AIforBizOwners Apple Podcast: https://podcasts.apple.com/gb/podcast/ai-for-business-owners/id1823255627