The insurance industry has to beware sleepwalking into an AI minefield, with repercussions running into billions.

There are two types of AI: Transparent and Opaque.

Insurers using Transparent AI will be able to explain to the regulator every decision their AI system made on their behalf, how and why.

Insurers using Opaque AI face a massive problem. They will have no audit trail, no explanation of how or why and leave themselves open to serious regulatory and legal actions. This could easily be the next PPI scandal.

You read it here first!