Scott Kosnoff Discusses NAIC’s AI Governance Pilot Program With Law Week Colorado

In an article for Law Week Colorado, insurance partner and leader of Faegre Drinker’s AI-X team Scott Kosnoff offered insights on the National Association of Insurance Commissioners’ (NAIC) AI Evaluation Tool pilot program, which has been launched in 12 states, including Colorado.

“What regulators most want is to get smart about how insurers are using AI,” Kosnoff explained. He recommended that insurers have a good story to tell to demonstrate their commitment to responsible decision-making.

“A credible story allows them to show regulators, courts, and the public, ‘We appreciate the concerns that have been expressed about AI, we’re taking those concerns seriously, and we’re acting with reasonable care to try to avoid negative outcomes,’” Kosnoff shared. 

Kosnoff concluded that compliance is not a one-time exercise. “There’s no finish line,” he stated, adding, “The technology’s going to continue to evolve, and the regulatory and legal expectations will continue to evolve.”