It has become nearly impossible to open a newspaper (or, more likely, a website) without finding an article discussing the concerns or advantages of artificial intelligence (AI). While the topic is seemingly ubiquitous now, life insurance regulators have been grappling for several years with the potential risks and benefits of insurers using AI, and the large external data sources utilized by AI, in underwriting and other insurance practices.

The regulatory landscape around AI is changing quickly, especially in light of the rise of large language models like ChatGPT and automated decision-making technology. This technology raises significant regulatory questions, including concerns that its use could cause unfair discrimination or could compromise policyholder privacy through the use of large data sets that include personal information. A number of insurance regulators have also expressed concern that external data sources used by AI and other algorithms could contribute to underwriting improperly based on protected characteristics such as race. See NYDFS, Circular Letter 1 (2019), https://www.dfs.ny.gov/industry_guidance/circular_letters/cl2019_01.