This article in Actuarial Review describes how colleagues from Guy Carpenter’s Cyber Center of Excellence and Marsh McLennan’s Cyber Risk Intelligence Center discussed the multifaceted cyber threat posed by artificial intelligence (AI). The presentation, held during the Spring meeting of the Casualty Actuarial Society, included insights from Guy Carpenter reports, Outlook on AI-Driven Systemic Risks and Opportunities and Artificial Intelligence: A Multi-Pronged Driver of Cyber Aggregation Risk.
One premise explored during the presentation was that, despite presenting a multitude of novel risks throughout the technology supply chain, AI alone does not create the types of single point of failure that typically concern catastrophe models. At the same time, AI is likely to increase frequency and severity of cyber events in ways insurers should register and address—whether they even write cyber.
“There are a lot of recent developments around AI and these are very exciting, but we should all recognize that these developments are built on technology that has been evolving for more than 70 years,” said Jess Fung, Guy Carpenter’s Head of Cyber Analytics.
Matthew Berninger, Principal Cyber Analyst, Marsh McLennan Cyber Risk Intelligence Center, observed how AI may be fraught with peril even when providing factually correct information.
“In the past, if somebody accidentally gave you access to a health care document, you might not even know about it,” Matthew said, discussing workplace productivity tools such as Copilot. “However, if you ask AI about a certain health condition, it may tell you that your co-worker has a similar condition. AI has the potential to inherit and expose security entitlements that are inappropriate.”