Colorado Draft AI Insurance Rules Are a Watershed for AI Governance Regulation

14 February 2023
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Key takeaways:
  • Comments: Insurers should closely review the Draft AI regulation and consider providing comments before the February 28 deadline. In the lead-up to the adoption of the NYDFS Cybersecurity Rules, several significant changes were made to the draft regulations before they were final as a result of industry comments.
  • Gap Analysis & Road Map: Insurers should consider conducting a gap analysis between the requirements in the Draft AI Regulation and their current AI and Big Data governance and compliance program. After the gap analysis, insurers should consider developing a road map to compliance.
  • Budget: The Draft AI Regulations will likely take effect in 2023, and many components of its obligations will require some companies to significantly increase their compliance budgets. Companies should consider starting the process of securing additional resources, if needed, from senior management.