Source: Financial Institutions Legal Snapshot

Financial Institutions Legal Snapshot discusses the phenomenon of “AI washing” in the insurance industry, where companies may overstate or misrepresent their use of artificial intelligence. The article highlights the legal and regulatory risks associated with misleading AI claims and the importance of thorough due diligence when adopting AI technologies.

It emphasizes the need for transparency, accountability, and robust governance frameworks to manage AI-related risks in insurance products and services. Regulatory scrutiny is increasing, and insurers must balance innovation with consumer protection. The piece offers best practices and calls for clear standards to prevent deceptive AI marketing and ensure responsible AI deployment in the financial sector.