Earlier quoted context omitted.
No need to ban AI from handling legal disputes. Unless you're representing yourself you need a lawyer and there's no way for an AI to act as a lawyer.
I should have made my thoughts clearer; my mind immediately went to small-time stuff like handling parking disputes, which I think AI is on track to competently solve.
So an AI can do the work but the person handling the dispute needs to sign off on it. If the AI screws up and the lawyer doesn't catch it then the lawyer's on the hook. I don't see any need to change this.