Agents may wish to adopt an acceptable-use policy. A sample policy from Big I may be viewed at https:// www. independentagent. com / legal-advocacy / Members-Only / Memoranda / default. aspx •
AGENCY OPERATIONS
BIG I AND ACT PROVIDE MEMO, SAMPLE POLICY ON AI written by Scott Kneeland, IIABA
The promise of artificial intelligence( AI) is compelling. Agencies have access to newly available automated products or services that could make them more efficient, effective and profitable. However, there are important legal issues related to AI that Big“ I " members should consider.
For example, like any other third-party vendor that handles data, AI raises potential data privacy and security risks that may— or may not— be addressed in the vendor ' s contractual terms. Agencies should also guard against risks relating to the accuracy of AI outputs, as well as intellectual property infringement and ownership issues.
Agencies should also watch out for new contractual restrictions imposed by carriers around AI usage, as well as regulatory compliance issues. Colorado recently became one of the first states to enact a comprehensive law regulating the use of AI in“ high risk " systems that make“ consequential decisions " in certain sectors, including insurance.
While the Colorado AI Act does not go into effect until February 2026, agents should consider proactively addressing AI usage with their staff. The Big“ I " Office of General Counsel and ACT have published a memo on the legal issues relating to AI usage and a sample acceptable-use policy that members can customize for their business.
ACCEPTABLE USE POLICIES
Agents should consider placing limits on using AI, especially in the following circumstances:
• Do not upload confidential, sensitive or proprietary information to AI platforms.
• Do not use AI-generated works in final work product without first reviewing and editing.
• Do not use AI to create content over which you intend to rely on asserting IP rights, and review works for potential infringement of third-party IP rights.
• Do not use AI if prohibited by contract or in connection with confidential or sensitive business processes that are subject to heightened regulatory scrutiny without careful consideration and any required prior authorizations.
Agents may wish to adopt an acceptable-use policy. A sample policy from Big I may be viewed at https:// www. independentagent. com / legal-advocacy / Members-Only / Memoranda / default. aspx •
28 KANSAS INSURANCE AGENT & BROKER