Artificial Intelligence

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Chatbots, autonomous vehicles, and connected machines in digital factories foreshadow what the future will look like: The widespread implementation of Artificial Intelligence (AI) applications brings many advantages for businesses such as increased efficiencies, fewer repetitive tasks and better customer experiences. Vulnerability to malicious cyber-attacks or technical failure will increase, as will the potential for larger-scale disruptions and extraordinary financial losses as societies and economies become increasingly interconnected. Companies will also face new liability scenarios as responsibility for decision-making shifts from human to machine and manufacturer. In the new report "The Rise of Artificial Intelligence: Future Outlook and Emerging Risks", insurer Allianz Global Corporate & Specialty (AGCS) identifies both the benefits and emerging risk concerns around the growing implementation of AI in society and industry, including in the insurance sector. AI, also referred to as machine learning, is essentially software that is able to think and learn like a human.


Artificial Intelligence v. General Data Protection Regulation: Complex Risks in Changing Times JD Supra

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Artificial Intelligence ("AI") swallows vast troves of data, so, as its definition suggests, it enables "the capability of a machine to imitate intelligent human behavior."1 Much like humans learn over time by exposure to different experiences and new information, AI systems can be fed enough data so that they can eventually draw conclusions and make inferences. Given AI's data diet, it is saddled with a host of privacy regulations, which vary depending on the nature of the data and its uses. This article highlights three compliance tensions between AI and the European privacy regime, the General Data Protection Regulation ("GDPR"), which contains various privacy-related principles for how personal data must be processed and provides certain data subject rights. With GDPR fines reaching as high as 4 percent of annual global turnover, or 20 million euros (whichever is higher), carriers insuring them should endeavor to understand these complex risks.


Era of robots creates chances for huge profits and losses too

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Evans Morris Gachiri, a fifth year Mechatronics Engineering student at Dedan Kimathi University of Technology, Kenya, demonstrates how a robotic coffee machine works: Artificial intelligence is no longer science fiction. London, March 22, 2018: Chatbots, autonomous vehicles, and connected machines in digital factories foreshadow what the future will look like: The widespread implementation of Artificial Intelligence (AI) applications brings many advantages for businesses such as increased efficiencies, fewer repetitive tasks and better customer experiences. Vulnerability to malicious cyber-attacks or technical failure will increase, as will the potential for larger-scale disruptions and extraordinary financial losses as societies and economies become increasingly interconnected. Companies will also face new liability scenarios as responsibility for decision-making shifts from human to machine and manufacturer. In the new report "The Rise of Artificial Intelligence: Future Outlook and Emerging Risks", insurer Allianz Global Corporate & Specialty (AGCS) identifies both the benefits and emerging risk concerns around the growing implementation of AI in society and industry, including in the insurance sector.


Data hacks and big fines drive cyber insurance growth

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The hotel group said last November that hackers had been accessing its database since 2014, compromising up to 339m guest records. Since then it has incurred $100m costs relating to the hack and that is before a potential £99m fine levied under EU rules. However, the effect has been cushioned by insurance policies, which have paid out $102m to the company. Cyber cover is one of the fastest growing parts of the insurance industry. High profile data breaches and ransomware attacks -- such as the WannaCry and NotPetya attacks in 2017 -- have convinced companies they need protection.


Artificial Intelligence Verticals (I): Insurance – Cyber Tales – Medium

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In spite of those problems, in the last decade, we noticed a new trend emerging. Insurances, in the effort of trying to reduce moral hazard problems, they started offering premium discounts to their final customers in order to get extra information. This occurred either through a questionnaire (asking directly the customer for further data in exchange for a lower price) or indirectly through devices (healthy devices, black boxes, etc.). The real issue though has been the engagement side of this proposal, because of the opposite nature of information, rewards, and human nature. The rewards offered were indeed either temporary or provided only once and people got lazy very quickly, while the information stream needed to be constant.