Being prepared for Artificial Intelligence

AI and governance are mutually inter-dependent:

• Governance systems (Board Originator) create firms which are better placed to adapt to AI, because of already planning and organising themselves long before AI becomes an everyday reality.

• AI works better in firms with good governance – because AI is more likely to be used appropriately, ethically and responsibly by such firms

In 2021, the European regulatory sector for insurance (EIOPA Consultative Expert Group on digital ethics in insurance, 2021) published these ambitions for the safety and reliability of AI in insurance firms:

• Firms should work towards having ethical and trust-worthy AI
• Balance the outcomes of AI with the interests of stakeholders
• Consider if financial inequalities or financial exclusion might be resolved
• Right level of human oversight and skill with AI
• Fit for purpose

The widely held hope, is that Artificial Intelligence (“AI”) will increase speed and agility in decision making.

In future, AI will make it possible to detect money laundering indicators in payees or customers, suppliers paying routinely late, prediction will improve, automation will improve, and cost reductions will be possible.

Board Originator keeps an eye on the developing field of AI, but we are very aware that humans make good decisions now without the benefit of AI.  The human touch, often led by passion or emotion, makes rational decisions too.

Board Originator will hunt for the most stage-appropriate and useful AI techniques and opportunities, for growth-conscious firms.  Board Originator is already creating data sets that have all the potential to create useful AI to the customer through:

• Dashboards for speedy information gathering
• Key points in digestible form
• Quantitative measures of date, time and number of reports
• Informed decision making based on risk

The painful, patchy evolution of standards for the internet, not to mention the boundless potential of AI to cause data / privacy issues and risks vis a vis nation states, mean AI will mean UK Government has to consider deeply what role it plays in setting standards for AI generation, sourcing and distribution (“data/AI governance”). 

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