Insurance Companies Are Embracing AI, for Better and for Worse

But when risk models are built using AI, it may be much harder to pin down what insurance companies are basing higher premiums on, he said. For instance, if companies use neural nets, an AI technique that's the basis for deep learning, the resulting model is basically an opaque box. Insurance companies would know what factors were used to train their AI model, and using the models to evaluate new customers would be as simple as feeding it the same types of inputs, but companies wouldn't know how the model internally related those factors to risk and which inputs are more important.