Recent changes to proposed and imminent Artificial Intelligence (AI) legislation in several jurisdictions have raised concerns about whether the technology can be used compliantly in insurance investment functions.
“As adoption grows, organisations also need a strong governance approach to support regulatory compliance, operational resilience, cybersecurity, and customer trust,” AJ Gallagher (AJG) said in its latest paper, “When AI Meets Finance: Risk Management in the Age of Intelligent Financial Institutions.”
In the paper, AJG said changes in AI legislation were creating “emerging regulatory risks for financial institutions”.
AJG said AI regulation would reshape risk and treasury operations, among other areas. That could affect investment teams at insurers, which are using AI to automate administration and other operations. Legislative changes could undermine those efforts and force lengthy, expensive adjustments.
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