2024 SOA ImpACT Conference - Session 1G: All things AI: Principles, Standards, and Best Practices 10.28.24 Recording

Artificial intelligence (AI) presents numerous opportunities in the insurance and financial industries. It also comes with heightened model, operational, legal and compliance, financial, and data risk. In this session, we will discuss speculation that emerging AI capabilities have sparked the fourth industrial revolution, examine what is different about this most recent round of capabilities, and examine why industry experts warn about the heightened risks the use of AI presents. We will review a framework - which includes AI ethical principles, standards, and best practices - to govern the use of AI. This will include a cross-reference of relevant Actuarial Standards of Practice as well as industry guidance like the NAIC Model Bulletin on the Use of AI Systems by Insurers. This framework will help actuaries and insurance professionals gain confidence that - if governed appropriately - we can reap the vast rewards of using AI systems in our industry.