The adoption of AI technology in the insurance claims process will improve efficiency for businesses and customers but could also increase the risk of fraud, according to Heidi Lawson, a partner at US law firm Cooley. While AI can speed up payments to policyholders through claims automation and cut administrative costs for insurers, fraudsters could abuse the system by fabricating receipts for stolen items, for instance. AI could make some types of claims fraud easier. As such, regulators are remaining vigilant about the technology, Lawson said. “Insurance companies need to be aware that this is an area where they have not yet fully developed their own AI,” she told CoinDesk.
The adoption of AI technology in the insurance claims process will improve efficiency for businesses and customers but could also increase the risk of fraud, according to Heidi Lawson, a partner at US law firm Cooley. While AI can speed up payments to policyholders through claims automation and cut administrative costs for insurers, fraudsters could abuse the system by fabricating receipts for stolen items, for instance. As such, regulators are remaining vigilant about the technology, Lawson said. “Insurance companies need to be aware that this is an area where they have not yet fully developed their own AI,” she told CoinDesk.