The notice briefly describes the controversy. It specifies the kind of relief sought, including the amount of monetary damages requested. A response to the charges is then sent by the opposing party, usually within seven days. This may also assert a counterclaim for damages. Either party can add or change claims in writing until the arbitrator is appointed. Once this occurs, changes and additional claims can only be made with the arbitrator's consent.

After the AAA receives the Demand for Arbitration and reply, an AAA administrator usually supplies the parties with a list of potential arbitrators. The list contains the arbitrator's name, current occupation, place of employment and appropriate background information. The parties mutually agree to nominees from this list. Potential arbitrators are obligated to notify the AAA immediately of any facts likely to affect their impartiality (e.g., prior dealings with one of the litigants), and disqualify themselves where appropriate. (Note: If the parties do not agree beforehand to the number of arbitrators, the dispute is decided by one arbitrator, unless the AAA determines that three arbitrators is appropriate.)

Once the arbitrator is selected, the AAA administrator schedules a convenient hearing date and location. There is no direct communication between the parties and the arbitrator until the hearing date; all requests and inquiries are received by the administrator and relayed to the arbitrator. This avoids the appearance of impropriety. The parties are free to request a pre-hearing conference to exchange documents and resolve certain issues. Typically, however, the parties, administrators, lawyers, and arbitrator meet face-to-face for the first time at the actual hearing.