Scott Kosnoff Discusses State Preemption of AI Regulation With Insurance News Net

Insurance partner and co-leader of Faegre Drinker’s AI-X team discussed a recent executive order attempting to preempt state artificial intelligence regulation with Insurance News Net.

The order, which “propos[es] unified federal governance of AI laws,” has created uncertainty among insurance companies, the article noted. Kosnoff cautioned companies to not see the order as a “get-out-of-jail-free card” for state-level regulations, as that “would be short-sighted and lead to bad results.”

“Regardless of what’s happening politically, regardless of what’s happening with the state of the law, insurance companies have their own risk management to worry about,” Kosnoff said. “Insurance companies ought to remain vigilant with respect to their AI governance and risk management. Only by having a robust AI governance and risk management framework can they really mitigate all those different kinds of risks.”