Swiss Re on AI risks in the healthcare sector | Insurance business America
Insurance companies are starting to introduce coverage for AI performance failures
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By Halee Andrea Alcaraz
The healthcare and pharmaceutical sectors will be most affected by the negative impact of artificial intelligence (AI) over the next decade, according to a new report from the Swiss Re Institute.
The study examined emerging AI-related risks across ten industries, including the likelihood and severity of AI-related loss events due to cyberattacks, data bias, and algorithmic and performance risks.
While the IT services sector will be most affected by AI risks, this will change as technology use becomes more widespread across industries such as mobility and health, said Christoph Nabholz, Swiss Re’s chief research and sustainability officer.
“Insurers are therefore starting to introduce specific coverage for AI performance failures – one of the biggest risks for all industries,” says Nabholz.
Swiss Re’s report said risks are also increasing and the consequences can be serious or even fatal as the healthcare industry continues to use AI technology to optimize patient monitoring, management, diagnosis and development, among other things.
Faulty or biased AI algorithms could have negative effects such as misdiagnosis and lead to serious illness or even death.
The negative impact of AI technology will also affect other industries in the next decade, such as mobility and transportation and energy and utilities, which are in second and third place respectively.
Swiss Re said the mobility and transportation sector will be highly exposed to the risks of AI, primarily due to the use of AI-powered connected and automated driving, which poses challenges in very different urban locations.
Meanwhile, the energy sector will also make extensive use of AI as the ongoing transition to net zero requires electrification and the creation of smart grids.
Pravina Ladca, Swiss Re’s group chief digital and technology officer, said that despite the benefits of AI for a wide range of industries, there are also risks that could lead to potential vulnerabilities.
“Given its role as a shock absorber, the re/insurance industry has an important role to play in managing AI-related risks and building the digital trust required to realize the full potential of these new technologies,” noted Ladva.
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2024-05-24 14:27:49
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