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It is my understanding that AI is being used in insurance not to supplant the risk models, but to automate human-driven tasks, such as reviewing claims or docum
by jwozn 4y ago
It is my understanding that AI is being used in insurance not to supplant the risk models, but to automate human-driven tasks, such as reviewing claims or documents, or to augment risk models with new data.
- nerdponx 4y agoThat's correct. But the difference between an AI claim processing algorithm and the risk model lies more in how the model is used than in how it actually works. Of course, the technical details of a text transformer differ significantly from the technical details of a decision tree or logistic regression. But when you zoom out a little, it's clear that many of the same core principles and techniques are used in both cases. So the content marketers are right in that the next big thing is automating tasks like claim processing. But I find it at least a little bit silly because, at its core, an AI claim processing algorithm is not so conceptually different from a pricing model, and it's well within the realm of understanding for many people on the quantitative side of the insurance business. I also want to avoid making particular claims or judgments about what AI "is". I will leave that to the futurists, philosophers, and AI researchers.