Chapter 6 discusses the transformative potential and challenges of automated decision-making in smart courts, where AI and algorithms assist or replace human decision-making at various stages of the judicial process. While AI offers advantages in accuracy, neutrality and efficiency, its rule-based nature introduces rigidity, limiting its adaptability and ethical judgment. The chapter categorizes AI systems into rule-based, data-matching and data-mining, and distinguishes between fully and partially automated systems. It highlights the necessity of human discretion in legal decisions and explores the potential for AI to develop discretion through advanced machine learning. Transparency and fairness are emphasized, addressing the challenges of algorithmic bias, data quality and the “black box” problem. The chapter advocates human oversight, bias detection and legal frameworks to ensure accountability and public trust in AI-assisted decisions. It concludes by recognizing the societal role of human judges and the need for a balanced approach that integrates AI’s strengths with human judgment to achieve a fair and efficient judicial system.