How insurers can stay ahead of escalating risks from their use of AI

The trend: Litigation around the use of artificial intelligence (AI) is likely to increase, and insurance industry experts are warning US carriers to buckle up in preparation while waiting and watching for further AI regulation.

  • “It’s fair to say that the plaintiff’s bar smells blood in the water, and they see the use of AI by insurers as sort of a fertile field,” Scott Kosnoff, a partner at Faegre Drinker Biddle & Reath, told InsuranceNewsNet.

High-profile cases are already in the courts: Much of the pending AI-related litigation is digging into inaccuracies, but law firms expect the majority of cases will focus on algorithmic discrimination in particular, challenging foundational aspects of AI usage.