Topic 5

The explosion of AI, especially generative AI, has intensified the need for regulation globally. Calls for action from governments and related non-government organizations will continue as countries around the world are in the early stage of regulation, as we grapple with how to clearly define AI itself and the risks it presents. 

Chief among the risks are discrimination bias and privacy concerns. Companies relying on the use of generative AI open themselves up to liability over bias and privacy issues, as do the developers of the AI systems as the lines become increasingly blurred in determining whether humans or machines are at fault. An example of this reliance on core property data across the property ecosystem which itself might not be properly geo-referenced thereby causing incorrect data to be added from other properties or worst of all bringing in the wrong data for the property of interest. This also plays into how third-party data vendors who are fusing their data with AI will manage such risks, particularly if the geo-referencing has been overlooked.

The big question is when will insurers want to address the risks and if so, how. As insurers increasingly adopt AI tools to streamline operations across their business, they should carefully consider what processes or workflows are willing to optimize when it comes to AI.  In essence, those areas will present the least risk as strict policies around the use of OpenAI platforms come into effect. One thing seems certain: insurance will be a catalyst for regulation and industry reforms. 

At UiSee we can help Insurers navigate their efforts into the calmer waters that AI can help facilitate with immediate impacts to their optimal business workflow.