CHAPTER 20Drifting into Algocratic Insurance?
By Srivathsan Karanai Margan1
1Insurance Domain Consultant, Tata Consultancy Services
Artificial intelligence (AI), powered by the concurrent and converging in global connectivity, explosion of data, growth in memory capacity, and increasing computing power, has entered an “eternal springtime”. An invigorated AI is seemingly capable of devouring all types of data, and demonstrating rejuvenated capabilities, for example in image and speech recognition; natural language processing (NLP), understanding and generation; pattern recognition and anomaly detection; and automated decision-making.
Furthermore, growth in the Internet of Everything (IOE) will spike a mega data deluge that is beyond the capability of human faculties to analyse. Only AI systems guided by codes and algorithms (algos) will be able to perform fast-data analytics in real time to generate actionable insights. The complete human dependence on algorithms and ensuing algorithmic dominance will create seismic shifts in the business landscape, and eventuate the genesis of new business models, products and services.
Welcome to the binary world of the algocracy!
Algocracy implemented with benign motives and strict ethical principles might result in a kind of benevolent dictatorship, because more informed, efficient and faster decisions are made. However, algos are not born neutral. They reflect the opinions, prejudices, biases and inaccuracies of their creators. Algos created ...
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