BUSINESS CONTINUITY AND RISK MANAGEMENT
With More Automation , Comes New Risks : The Implications of More AI
Coined in 1956 , the use of artificial intelligence continues to grow .
By Barron S . Wall , ARM , PMC ICA Risk Management Consultants
Essentially , AI enables machines to learn from experience , adjust to new inputs and perform human-like tasks . Artificial intelligence is designed to evolve as it learns , and it ’ s worth examining some of the implications in the automobile industry .
The taxi and limousine industry is being revolutionized by ride-sharing apps such as Uber and Lyft . This cuts into traditional taxi and limousine drivers ’ income and rendered NYC ’ s medallions exorbitant relics of the past . Get ready , because in this decade , ride-sharing platforms will cut out the human driver entirely . Their seats will be eerily vacant , the wheel turning with no human input . Uber and Lyft are already
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working with vehicle manufacturers as well as technology giants such as Apple and Google to produce fully autonomous cars for them .
Another benefit of AI is the vehicle itself produces information for automobile manufacturers like GM and Tesla to gather data that now allows them to enter the insurance industry . By accumulating information and data on drivers ’ habits , as well as wear and tear on the vehicle ,
... software glitches aren ’ t the only risk to safety in the transportation industry .
these manufacturers believe they can offer insurance at better prices and the driver a better driving experience , while expanding their product deliverables . On the other hand , there are insurance companies whose revenue consists of almost solely automobile premiums , and they
Empty cockpit of vehicle , HUD ( Head Up Display ) and digital speedometer , autonomous car
Photo : Getty Images / iStockphoto / metamorworks realize that the creation of autonomous vehicles may dramatically reduce their revenue , and therefore need to both embrace this technology for their own survival and expand into other areas of insurance sales .
One of the concerns is if the “ training data ” that the AI learns from — in order to assess the various scenarios — would allow safe decision-making . The data is only as good as the input from the humans who enter this information , so the continual expansion of these scenarios will need to be properly accounted for .
Beyond two-ton autonomous vehicles , trucking companies are testing eighteen wheelers that are already on our highways , destined to haul goods from point “ A ” to “ B .” Who needs a human trucker that gets sleepy to operate a 40-ton vehicle when you can have a computer that never needs a coffee break or a nap ? As these tireless “ drivers ” become more commonplace and perfected , this AI application will have a dramatic effect on human job loss as AI expands into this industry .
With more automation , new risks manifest left and right . For instance , software glitches aren ’ t the only risk to safety in the transportation industry . Computer hackers have existed for decades , and therefore these new systems must become impenetrable to prevent nefarious activity and computer terrorists who might breach the computer system to either cause tremendous disruption , property damage and potential personal injury , or even commandeer a truck for theft of its contents or cause it to steer into a crowd .
Since AI is used in every Google search , to unlock our phones , to help others evaluate our creditworthiness as well as our job applications , it will only continue to proliferate in other areas , including the healthcare industry . It ’ s all about huge amounts of data . In the automobile industry , data is king and it ’ s relatively available , and therefore will only continue to be used — hopefully to improve society .
When the day comes and you take your inaugural ride in an autonomous Uber to the airport , you may want to think twice before you tell the vehicle , “ get me to the airport as quickly as possible .”
Barron S . Wall , ARM , PMC , is Managing Associate at ICA Risk Management Consultants in Mahwah . While ICA consults on insurance matters , it does not sell insurance .