Robert Tomilson and Myriah Jaworski Present to the Association of Life Insurance Counsel on Emerging Litigation Trends in Artificial Intelligence and Machine Learning

On October 3, 2023, Robert Tomilson and Myriah Jaworski, co-chairs of Clark Hill’s Artificial Intelligence and Emerging Technologies (AI/ET) practice, presented at the Association of Life Insurance Counsel (ALIC) on emerging trends in AI/ML litigation in Cincinnati, Ohio.  While the life insurance industry is on the verge of unprecedented change that will drastically shift the nature of how life and longevity is measured, Tomilson and Jaworski warned that the benefits of AI present equally challenging regulatory and litigation hurdles.  Newly proposed AI regulations in several states have life insurers remediating any detected unfair discrimination.  The Life insurers are being asked to estimate the race and ethnicity of all applicants for their life insurance products and to conduct detailed quantitative testing of models that use external consumer data and information sources for potential bias.  Negative results from these tests will undoubtedly spur increased litigation in an industry that has been beset by cost of insurance class action litigation.  Even absent the proposed regulations, insurance companies are being named defendants in class actions alleging the algorithms and artificial intelligence being used for administrative and claims handling purposes is systemically biased.

Clark Hill has assembled an interdisciplinary team to advise insurance companies on licensing and protecting AI/ML technologies as well as deploying these tools to ensure that they are compliant with existing (and proposed) insurance rules and regulations.