Minnesota Lawyer Speaks to AI-X Team Co-Leaders Jay Brudz and Scott Kosnoff About AI Regulations and the Team’s Services

In the article, “Faegre Drinker counsels insurers on managing risk while using AI,” Minnesota Lawyer speaks to AI-X team co-leaders Jay Brudz and Scott Kosnoff about the team and the algorithmic testing and AI governance and risk management services they’ve launched for insurers.

Brudz and Kosnoff stated that to mitigate risks, “insurers should 1) stay on top of the evolving regulatory and litigation developments, 2) implement a risk-management framework that takes those developments into account and 3) consider testing for unfair discrimination, even if not legally required.”

The article highlighted the evolving federal and state regulations regarding AI. “We think the impacts on the insurance industry will be both direct and indirect,” noted Brudz and Kosnoff. “For example, insurers that do business with the federal government may be expected to adopt AI governance and risk-management practices that are consistent with those implemented by the federal agencies. In addition, technical guidance to be developed by the newly formed U.S. Artificial Intelligence Safety Institute (including on how to identify and mitigate algorithmic discrimination) could be embraced by one or more states in the insurance context.”

“These regulatory developments are a big deal and for many insurers will require a significant lift,” shared Brudz and Kosnoff. “Putting together an effective risk management framework and testing for unfair discrimination aren’t the sort of things you can do over a long weekend.”

The full article is available for Minnesota Lawyer subscribers.