The Oklahoma Department of Insurance published a bulletin reminding insurers conducting business in the state of the permissible use of artificial intelligence systems, per Oklahoma Insurance law.

While insurers have benefitted from the use of AI systems in many stages of the insurance cycle, it is not without risk. Any action or decision affecting insureds made and supported by AI and AI systems must comply with applicable insurance laws and regulations, including unfair trade practices and unfair discrimination laws.

The Unfair Trade Practices Model Act (36 O.S §§ 1201) prohibits practices that constitute unfair methods of competition or deceptive acts and practices. Insurers should be aware that the use of AI systems can result in unfair discrimination, inaccuracy, data vulnerability, and lack of transparency, and take action to avoid those risks.