Scott Kosnoff and Jay Brudz Share Guidance on AI Risk Management in Indiana Lawyer

Indiana Lawyer spoke with partners and co-leaders of the AI-X team Scott Kosnoff and Jay Brudz on the launch of the team’s algorithmic testing and AI governance and risk management service for insurers.

The article highlighted that AI is a driving force that’s revolutionizing every industry and bringing about bigger change than the internet. “It’s a legitimate fear for organizations that if they don’t figure out a best use of AI, they will go the way of the dinosaurs,” Kosnoff noted. He also added that none of the concerns raised about AI usage are unique to the insurance industry.

Indiana Lawyer also made note of the recently issued NAIC model bulletin regarding AI regulation and the Colorado governance regulation, and how these introduce significant compliance obligations for insurers using AI.

Regarding the risk management services the team offers, Brudz shared that, “The interdisciplinary team develops and implements testing strategies that are tailored to the needs of each client and its AI use cases. We’re able to test the client’s AI models for potential unfair discrimination under the guidance of legal counsel and while leveraging the power of our AI platform, QuarterJack.”

Brudz also said the testing Faegre Drinker conducts is one part of a larger risk management framework the firm uses to help insurers mitigate the regulatory, litigation and reputational risks associated with using AI.

The full article is available to Indiana Lawyer subscribers.