Risks of AI Technology With Little Testing

When it comes to Insurance and Testing, it’s rather hard to imagine that interaction being completely centered around Artificial Intelligence and automation.  The insurance industry is predominantly moving to  an ever changing environment.   A new insurance company is branching out, experimenting with how society will accept the processing of claims, new accounts and more through AI.  This approach, in a way, replaces the human need for accuracy but like any other company using technology, it will require testing.  But, how does testing and a company like Lemonade join forces to put quality forward in AI technology?

Like any great testing organization or testing professional in the industry, requirements are essential but with this new insurance way of thinking, what about the potential risks to the claims, to payment processing?  Testers, regardless of the methodology used, spend a significant amount of time reviewing, understanding and preparing tests for the requirements.  Such efforts are usually in the form of human interaction with the business users, business analysts, developers, etc.  But in the new wave of companies using AI, such human interaction is practically removed and this potential risk can be extensive.  It may not seem like that is the case as everything seems to be moving forward in technology, especially with the use of AI.

Requirements are requirements regardless of the system, product, or even everyday items.  Let’s look at it this way: Imagine you are a baker and your customer wants a cake.  Well, the description of the cake, flavor, filling, icing, etc – those are REQUIREMENTS.  It’s that simple.  Now, turn your mind back over to Insurance companies like Lemonade that use AI.  Customers file a claim using an app, voice recording, video, etc.  That claim turns into payment for the customer but who is reviewing that claim?  The AI of course.  But the AI needs to know how to process the claims and send out the payments.  Testing is needed for the AI’s capabilities to function but that is limited when the AI replaces the human interaction – the validation and verification step.

Potential threats or risks can be payments are incorrect, claims are approved when they should be denied, the behavior of the AI is inconsistent with the traditional way that claims processing is to occur, just to name a few.  Insurance companies moving in the direction of the AI seem like they are innovative, ingenius, advancing but what about keeping the bureaucracy of insurance, including requirements, intact?  Testers are forced to move forward with the changing technologies and the advancement of societies but at what cost?  Organizations need to know that even though they want to move forward with AI and Digital Technology, they should not move forward with the possibility of quality suffering.  Testing and AI need to be acrimonious and in harmony to keep insurance organizations like Lemonade at the top of the competition. Lemonade acquired 16% of its customers from State Farm, but will surely defend its integrity if there are issues and problems with the AI behavior.   But, if the AI process fails in anyway for those 16% of the customers, then those same customers will more than likely return to State Farm.  This is because the requirements for the AI to work effectively, efficiently, and correctly were not reliable nor tested in the way testers can validate.  Where will Lemonade be then?  Back in the hands of the testers.

This is where testing and companies like Lemonade can partner up and provide assurance as the “insurtechs” change the world.  QA consulting firms and solution providers, like AwesomeQA, hire the right kind of tester with the knowledge and experience to help with the ever changing requirements and especially with AI testing.  As insurance companies lean more towards AI, testing firms also are leaning more in that direction, especially with the use of automation.  Requirements will be tricky to manage considering the AI involvement but it’s not unheard of.  Testing may just take on a more creative approach than the traditional method considering the new approach.  It’s time to embrace the technology and the new frontier!