The emergence of artificial intelligence (AI) and automation brings many benefits to businesses but, in the wrong hands, the technology can introduce potential risks that could counterbalance its positive impact, a report by Allianz Global Corporate & Specialty (AGCS) said.
The report, titled “The Rise of Artificial Intelligence: Future Outlook and Emerging Risks”, identifies both the benefits and risks associated with the increasing integration of AI in society and industry, including the insurance sector.
“AI comes with potential benefits and risks in many areas: economic, political, mobility, healthcare, defense, and the environment,” Michael Bruch, head of emerging trends at AGCS, said. “Active risk management strategies will be needed to maximize the net benefits of a full introduction of advanced AI applications into society.”
In the insurance industry, AI is most often present as chatbots that provide financial advice. However, there are many other uses for various industries, such as directing self-driving cars, improving weather forecasts, and operating industrial machines.
Among the new considerations posed by AI is cyber risk,…
