In addition, some states in the US are introducing additional levels of consumer protections. The Insurance Circular Letter No. 7 reflects NYDFS's commitment to promoting innovation in the insurance industry while ensuring that the use of advanced technologies like AI does not lead to unfair discrimination or compromise consumer protection. The Colorado AI Act is set to be enforced starting February 1, 2026.
Rules and regulations will keep changing, and so will the AI models and products you use. Establishing actionable governance over AI investments today is critical to the future success of your business. Learn how to establish your case for AI governance.
AI Governance & Assurance | Ethics & Responsibility
Ethics in action: Building trust through responsible AI development AI ethics seem to consist of a volatile maze of laws, tech and public whims. Build agility to control the uncontrollable, or risk losing everything. AI’s transformative potential introduces technological ethical dilemmas like bias, fairness, transparency, accuracy/hallucinations, environment, accountability, liability and privacy. Likewise, behavioral ethical dilemmas such as automation bias, moral hazard, self-misrepresentation, academic deceit, malicious intent, social engineering and unethical content generation are typically out of the passive control of technology.
You may remember Christoph Molnar from our podcast about The Modeling Mindset. Get ready because next week, he returns to the show with his co-author Timo Freiesleben to discuss their latest book. Follow the show on LinkedIn so that you don't miss the release of this fascinating discussion.
Generative AI ethics: 11 biggest concerns and risks As adoption and use cases grow, generative AI is upending business models and driving ethical issues such as misinformation, brand integrity and job displacement to the forefront. Like other forms of AI, generative AI can affect ethical issues and risks pertaining to data privacy, security, energy usage, political impact and workforces. GenAI technology can also potentially introduce a series of new business risks, such as misinformation and hallucinations, plagiarism, copyright infringements and harmful content. Lack of transparency and the potential for worker displacement are additional issues that enterprises might need to address.
Industry Regulation & Legislation
What are the legal implications of AI for the insurance industry? Sharing insights into some of the current – and future – legal implications of AI on the insurance industry, Rosehana Amin (pictured), partner at Clyde & Co, noted that regulators are turning a closer eye to AI governance, which has important legal implications for the insurance industry. In the UK, there is no single comprehensive AI regulation. Rather, she said, the UK is adopting a sector based approach based on a set of principles to manage AI risks.
Texas Legislature Considering Sweeping AI Bill – Impact on Insurance Industry Virtually every major industry has seen the proliferation of artificial intelligence systems in recent years. Despite a lack of comprehensive legislation at the federal level, over thirty states have enacted regulations or restrictions on the use and development of artificial intelligence (“AI”) systems. With few exceptions, state-based AI regulation has been targeted and industry-specific. However, Texas lawmakers are currently considering HB 1709, the “Texas Responsible Artificial Intelligence Governance Act” (“TRAIGA” or “the Act”), which would impose broad, heavy-handed restrictions and obligations across many major industries regarding the use and development of AI systems in Texas. This blog post focuses on the impact TRAIGA would have on the insurance industry.
A new YouGov survey explored how frequently Americans are interacting with AI tools and what impact AI will have in the future. Increasing shares of Americans are feeling skeptical about AI and expecting it to have a negative impact on society.
As a futurist (fancy word for “Strategic Foresight”), I’m frequently asked about artificial intelligence and its potential risks to humanity. The questions often lean towards scenarios straight out of science fiction: superintelligent machines taking over the world, robots becoming self-aware, or AI suddenly deciding to eliminate humanity (As an Austrian I get the legacy – Hey Arnold :D). But tet me be clear: we’re nowhere near any of these scenarios, and frankly, such discussions distract us from the real and pressing challenges AI presents.
