Recommendation: Require meaningful human review and verification of any AI-generated content before it is used or relied upon, especially content that touches coverage, underwriting, quotes, claims handling, policy interpretation, or client-facing statements. AI outputs must not be treated as a final answer on coverage or other binding operational actions. It is also important to maintain oversight and documentation of AI input and outputs( see also Exhibit A, Section 3).
INTELLECTUAL PROPERTY OWNERSHIP AND INFRINGEMENT
AI-generated work product may not be eligible for copyright, trademark or patent protection, negating or weakening the agency’ s ability to protect its own IP( e. g., logos and marketing materials). AI outputs may also draw on and reproduce third-party IP. Using such content without review or contractual protections could expose the agency to infringement claims.
Recommendation: Avoid using AI for content where the agency intends to assert IP rights. Review and revise AI-generated content for originality before use and ensure your agency understands and complies with applicable third-party provider terms regarding use and / or commercialization of such content. consider in third-party provider contracts, see Part Two below.
ALGORTIHMIC BIAS & REGULATORY COMPLIANCE
While there is no comprehensive US law regulating the use of AI, the regulatory landscape is evolving rapidly and varies by state. AI used in connection with regulated decisions carries heightened risk. For example, regulators have raised concerns about potential bias in AI and algorithmic screening of job applicants.
Recommendation: Seek qualified legal review and advice for any use of AI to support legally consequential decisions and monitor AI regulations applicable in the jurisdictions where your agency operates. Establish a documented AI governance process and Acceptable Use Policy that reflect your agency’ s practices and are reviewed and updated regularly.
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CONTRACTUAL RESTRICTIONS
Your agency’ s agreements with third parties, including vendors, service providers and carriers, may contain provisions that directly impact how your agency is permitted to use AI. For example, some vendors restrict how outputs may be used, and carrier appointment agreements may require express approval before using carrier data with AI. An agency that uses AI in violation of such restrictions, even unintentionally at the staff level, risks contractual breach.
Recommendation: Review carrier appointment agreements and vendor contracts for AI-related restrictions before uploading relevant data to AI tools or systems( see also Exhibit A, Section 5). For more information on important contractual terms to