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 companies , fraudsters could abuse the system by fabricating receipts for stolen items , for instance . As such , companies are remaining vigilant about the technology , Lawson said . “Regulators are very wary of AI,” Cooley law firm partner Heidi Lawson commented to the publication. Another expert said the need for insurers to automate for minimum payouts could cause claims ' amounts to increase .
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 companies , fraudsters could abuse the system by fabricating receipts for stolen items , for instance . As such , companies are remaining vigilant about the technology , Lawson said . Another expert said the need for insurers to automate for minimum payouts could cause claims ' amounts to increase .