Scott Kosnoff, an insurance partner and co-leader of Faegre Drinker’s AI-X team, recently spoke with Insurance News Net about the implications of a new executive order that aims to establish unified federal oversight of artificial intelligence laws. The article highlights concerns within the insurance industry regarding the potential impact of this order on state-level regulations.
Kosnoff warned against interpreting the executive order as a way to avoid compliance with state regulations. He stated, “Regardless of what’s happening politically, regardless of what’s happening with the state of the law, insurance companies have their own risk management to worry about,” adding, “Insurance companies ought to remain vigilant with respect to their AI governance and risk management. Only by having a robust AI governance and risk management framework can they really mitigate all those different kinds of risks.”
He also noted that viewing the federal action as a “get-out-of-jail-free card” for state-level rules would be “short-sighted and lead to bad results.” Kosnoff emphasized that ongoing attention to internal governance is essential for insurers as they navigate evolving legal requirements around artificial intelligence.