Emotionally-Aware Agents for Dispute Resolution

--In conflict, people use emotional expressions to shape their counterparts' thoughts, feelings, and actions. This paper explores whether automatic text emotion recognition offers insight into this influence in the context of dispute resolution. Prior work has shown the promise of such methods in negotiations; however, disputes evoke stronger emotions and different social processes. We use a large corpus of buyer-seller dispute dialogues to investigate how emotional expressions shape subjective and objective outcomes. We further demonstrate that large-language models yield considerably greater explanatory power than previous methods for emotion intensity annotation and better match the decisions of human annotators. Findings support existing theoretical models for how emotional expressions contribute to conflict escalation and resolution and suggest that agent-based systems could be useful in managing disputes by recognizing and potentially mitigating emotional escalation. Emotional expressions serve essential social functions in human relationships. They convey one's beliefs, desires, and intentions -- shaping the beliefs, desires, and intentions of interaction partners [1], [2]. People high in emotional intelligence achieve more success in navigating emotional relationships [3], and there exists growing interest in creating AI agents that understand and enact these social functions [4], [5]. Prior work suggests that emotionally-aware agents are suitable for a growing list of applications, including teaching people to convey emotions effectively [6], improving human-agent interaction [7], detecting and moderating toxic communication [8], and serving as methodological tools for studying human emotion [9]. This paper examines the capacity of agents to understand human emotional expressions in the context of text-based dispute resolution. Disputes arise when one party in a relationship (an individual, group, or nation) levies a claim that another party refuses to accept, thus threatening the future of the relationship [10].