A good review of reasons insurance companies are pulling back from insuring companies that lean on generative AI.

[abucci@buc.ci]

A good review of reasons insurance companies are pulling back from insuring companies that lean on generative AI. Point 4, "The main problem is not just the error, but the incentive not to see it" is especially damning: use of AI not only obscures audit trails, it sets up perverse incentives against accountability, pushing costs and risk to other parts of an organization, its customers, or society. The net result is that whatever "local" advantages AI may provide turn into downstream risk that cannot be easily accounted for. Insurance companies are (rightly) allergic to this state of affairs.

Another example of how (whole)-systems thinking is very helpful for parsing the effects of technology changes like this.

https://freakonometrics.hypotheses.org/89367

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