How Privacy & Ethics Impact Assessments Strengthen AI Governance

The rapid technological developments in the past years in the field of Artificial Intelligence (“AI”) and the possibilities to utilize and leverage large amounts of customer data readily available for analytics increase also the opportunities for the insurance industry to offer personalized products, to improve risk models and pricing & underwriting efforts including fraud detection and to gain new customer groups etc. At the same time „Black Boxes“ and hidden bias in AI solutions could threaten customers‘ trust.

Therefore the chances and risks of the usage of Big Data and AI need to be carefully balanced. Core legal principles especially in the area of customer protection and Privacy build a solid basis for a strong governance framework for trustworthy AI. Organizations should promote an interdisciplinary dialogue between Data Scientists, Business Owners, Actuaries, Compliance and Privacy Experts to achieve a user-friendly interpretation and implementation of the current law without hindering innovation.