I think the weakest part of the bakery example is the lack of specific numbers for the rent situation. Paying for someone's rent for over a year is a pretty large financial contribution and for two people not in a romantic relationship is should not be hard to do the accounting on. Like if you can fight over equity but you can't even calculate the rent you paid over the last year ... well it's no wonder you ran out of savings ...
This also points to a weakness in the product itself: it jumps to creating a solution without pushing for more info.
Yeah after re-reading the scenario it is pretty weird. The AI doesn't have enough data. There should be concrete numbers for the rent. Why wouldn't Daniel tell the LLM exactly how much it was?
Great idea though I am skeptical it will be adopted in contentious situations without some sort of stick. In amorphous situations where there is just high trust but an aversion to talking things out I could see this kind of tool being used. But in contentious or low trust situations (strangers) I suspect most people do not want fairness, they want to be ahead. A fair agreement will, paradoxically, disappoint everyone since every party feels the lack of clear advantage.
That's the problem, the story is saying he stopped focusing full-time on the business in order to make his own ends meet. It looks like the main innovation of the mediator generated deal is that it attempts to reconcile by drafting a way back in to 50/50 if he recommits. The starting 60/40 split is not that important.