April 19, 2023

Scott Kosnoff Comments on Colorado's Life Insurance Draft Bill With Legaltech News

In “What Exactly Are ‘Best AI Practices’ in the U.S.? Colorado Offers One Answer,” Legaltech News spoke to insurance partner Scott Kosnoff about Colorado’s life insurance draft bill, which could eventually raise the bar for what artificial intelligence (AI) best practices look like in the United States, the publication reported.

“The Colorado draft regulation is awfully specific and granular. It’s very prescriptive in a way that surprised and disappointed the life insurance industry,” said Kosnoff. “I think it’s fair to say that many life insurers were hoping for, maybe even expecting, a more principle-based approach from the Colorado Division of Insurance.”

Kosnoff noted that the bill has been considered by some to be too rigid and not proportional. “The [National Institute of Standards and Technology (NIST)] documents recognize that organizations present different risk profiles and have different use cases in terms of AI and, because of that, have to be afforded flexibility in terms of their governance. And also, this recognizes that the governance framework that you put in place ought to be proportional to the risk associated with however you’re using these tools,” he explained.

“Colorado effectively took a one-size-fits-all approach,” said Kosnoff, adding that Colorado took the NIST suggestions and made them mandatory.

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