Swiss Re on the artificial intelligence threats facing the health sector

According to a new report by the Swiss Re Institute, the health and pharmaceutical sectors will suffer most from the adverse effects of artificial intelligence (AI) in the next 10 years.

The study examined emerging AI risks across 10 industries, examining the likelihood and severity of AI-related loss incidents resulting from cyberattacks, data bias, and algorithmic and performance risks, among others.

While the IT services sector will be most affected by AI risks, this will change as the use of the technology becomes more widespread across industries such as mobility and health, said Christoph Nabholz, director of research and sustainability at Swiss Re.

“Therefore, insurance companies are starting to introduce special protection in the event of artificial intelligence failure – one of the greatest threats to all industries,” Nabholz noted.

The Swiss Re report explains that risks are also increasing and the consequences could be serious and even deadly as the healthcare industry continues to use AI technology to improve patient monitoring, administration, diagnosis and drug development, among other things.

Faulty or biased AI algorithms can result in negative outcomes such as misdiagnosis, leading to serious illness or even death.

The adverse effects of AI technology over the next decade will also affect other industries, such as mobility and transportation, as well as energy and utilities, which rank second and third, respectively.

Swiss Re says the mobility and transport sector will be highly exposed to AI-related risks, mainly due to the use of connected and AI-based automated driving, which poses challenges in highly diverse urban areas.

Meanwhile, the energy sector will also make extensive use of AI as the ongoing net zero energy transition requires electrification and smart grids.

Pravina Ladca, Swiss Re’s group chief digital and technology officer, said there are also risks that could lead to potential security vulnerabilities, despite the benefits that artificial intelligence brings to many industries.

“Given its role as a shock absorber, the reinsurance industry has an important role to play in addressing AI risks and helping build the digital trust needed to realize the full potential of emerging technologies,” Ladva noted.

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