Generative AI in Legal and Insurance Fields: A Balancing Act of Trust and Caution

Artificial intelligence (AI), especially generative AI like ChatGPT, is becoming increasingly influential in various industries, including law and insurance. However, its reliability has come into question after a lawyer, Steven A. Schwartz, mistakenly relied on ChatGPT for legal research, resulting in a court sanction for presenting fictitious judicial decisions. Generative AI, capable of creating original content, is trained on extensive public data sets, yet lacks human attributes such as experience and judgment, which are crucial in legal and insurance contexts.

Despite its potential for improving document management and analyzing trends, AI’s applicability in complex, high-severity cases remains limited. The industry is urged to use AI responsibly, supplementing rather than replacing the necessary human element. Even ChatGPT’s CEO, Sam Altman, advises caution in depending on AI for critical tasks, underscoring the need for a balanced approach in integrating AI into legal and insurance practices.