Alliance Formed to Explore Risks and Implications of Artificial Intelligence Technology
In an effort to promote the development of safer and more reliable AI products, a new UKRI Prosperity Partnership has been established. Led by the University of Edinburgh, the partnership is named 'AI2: Assurance and Insurance for Artificial Intelligence' and is valued at £2 million. The aim of this academic-industry collaboration is to develop novel methods for understanding, measuring, and insuring against risks associated with the commercial application of artificial intelligence in sectors like transport and healthcare [1][2][3].
The partnership involves key players such as AXA, WMG from the University of Warwick, the University of Oxford, and insurance group Asirom VIG from Romania. Another notable collaboration is between Audatex, a part of Solera Holdings, Inc., and Asirom, which aims to use AI for faster claim settlement and shorter key-to-key times [4].
One of the key figures behind the partnership is Professor Lukasz Szpruch from the University of Edinburgh's School of Maths. He believes that AI insurance offers a new paradigm that explicitly covers risks like model failure, bias, or unintended behaviour [1]. By establishing a robust AI assurance and insurance framework, the partnership hopes to lead to the wider and safer adoption of AI technologies in industry.
Another aspect of the partnership is its focus on insuring against risks in high-stakes environments like transportation and healthcare. For instance, Zesty.ai, the leader in property analytics powered by AI, has expanded its partnership with The Berkshire Hathaway Homestate Companies (BHHC). BHHC is using Zesty.ai's AI-powered wildfire risk model, Z-FIRETM, in 12 states for both underwriting and rating [5].
The initiative also plans to explore insurance and protection services to protect organizations from unreliable AI solutions. This includes addressing challenges that current insurance approaches cannot handle, such as compliance, data privacy, claims decision-making, and liability in AI deployment [1][2][3].
The LMA has also published the findings of a survey on AI and machine learning use in actuarial and risk, conducted in partnership with Barnett Waddingham. The survey highlights how AI can enhance actuarial risk assessment and pricing in various industries [6].
In summary, the UKRI Prosperity Partnership 'AI2: Assurance and Insurance for Artificial Intelligence' is a significant step towards ensuring the safe and responsible integration of AI into critical sectors. By providing clear incentives for developers to create safer and more reliable products, the partnership aims to foster the wider adoption of AI technologies, ultimately benefiting both businesses and consumers.
References: 1. The UKRI Prosperity Partnership 'AI2: Assurance and Insurance for Artificial Intelligence' 2. Zesty.ai Expands Partnership With BHHC 3. LMA Survey on How AI Can Enhance Actuarial Risk 4. Audatex & Asirom Team Up on AI Powered, Automated Claims 5. Zesty.ai Expands Partnership With BHHC 6. LMA Survey on How AI Can Enhance Actuarial Risk
- The partnership, 'AI2: Assurance and Insurance for Artificial Intelligence', aims to develop innovative methods for understanding and insuring against risks associated with AI's commercial application, particularly in sectors like transport and healthcare.
- By establishing a robust AI assurance and insurance framework, the partnership hopes to lead to the wider and safer adoption of AI technologies in the industry, fostering business growth.
- AI insurance, according to Professor Lukasz Szpruch, offers a new paradigm that explicitly covers risks like model failure, bias, or unintended behavior.
- The partnership involves key players like AXA, WMG from the University of Warwick, the University of Oxford, and insurance group Asirom VIG from Romania, exploring AI's use for faster claim settlement and shorter key-to-key times.
- The initiative also plans to explore insurance and protection services to protect organizations from unreliable AI solutions, addressing challenges that current insurance approaches cannot handle, such as compliance, data privacy, claims decision-making, and liability in AI deployment.
- Education and self-development, through resources like the LMA's survey on AI and machine learning use in actuarial and risk, will play a crucial role in career development in the rapidly evolving AI finance and investing landscape.
