AI TRiSM to address Generative AI

by Sanjay Mazumder

The first part is an introduction to AI TRiSM and the need for it in the Insurance industry for AI particularly for the current wave of Generative AI deployment. The second part covers the detail of deployment, dissecting the Generative AI deployment stack and how different functionalities for AI TRiSM are implemented on the stack.

What is AI TRiSM

AI TRiSM stands for Artificial Intelligence (AI) Trust, Risk, and Security Management. Gartner defines AI TRiSM as a framework that supports AI model governance, trustworthiness, fairness, reliability, robustness, efficacy, and data protection. AI TRiSM includes solutions, techniques, and processes for model interpretability and explainability, privacy, model operations, and adversarial attack resistance.

AI TRiSM is a critical framework for any organization that is using or planning to use AI. By implementing AI TRiSM, organizations can help to ensure that their AI models are trustworthy, fair, reliable, robust, effective, and secure. This will help to protect their customers, employees, and data, and it will help them to achieve their business goals. According to Gartner, organizations that incorporate this framework into business operations of AI models can see a 50% improvement in adoption rates due to the model’s accuracy.

Part 1: AI in Insurance Industry

The insurance industry is one of the sectors that is increasingly adopting AI. AI can be used to automate tasks, improve customer service, and make better risk assessments. Here are some specific examples of how AI is being used in the insurance industry:

– Automating claims processing: AI can be used to automate the process of processing insurance claims. This can free up human resources to focus on other tasks, such as customer service.

– Personalizing insurance policies: AI can be used to personalize insurance policies for each individual customer. This can help to ensure that customers are getting the right coverage at the right price.

– Identifying fraud: AI can be used to identify fraudulent insurance claims. This can help to reduce the amount of money that is lost to fraud.

Depending on the insurance company’s specific requirements, available data, and expertise, here are some specific generative AI models commonly used in the insurance market for the mentioned business cases:

1. Synthetic Data Generation: Variational Autoencoders (VAEs) and Generative Adversarial Networks (GANs) can be used to generate synthetic insurance data that mimics real data’s statistical properties and structure.

2. Risk Assessment: GANs can be employed to generate simulated scenarios for risk analysis. For instance, Conditional GANs (cGANs) can generate synthetic data with specific risk factors or variables manipulated to analyze their impact on insurance portfolios.

3. Fraud Detection: Anomaly detection models based on autoencoders, such as Variational Autoencoders (VAEs) or Deep Autoencoder Networks, can identify patterns that deviate from normal behavior, helping to detect potential fraud cases.

4. Customer Experience: Conditional GANs and VAEs can be used to generate personalized insurance quotes or recommendations based on customer data. These models learn from customer preferences and behaviors to generate tailored offers.

5. Underwriting and Pricing: Bayesian Generative Adversarial Networks (BayesGANs) and VAEs can be utilized to simulate and generate predictions for events relevant to underwriting and pricing. These models can generate scenarios that help insurers assess risks and determine appropriate pricing.

However, there are also risks associated with using AI in the insurance industry. For example:

Bias and discrimination against certain groups of people: AI models can be used to make decisions that affect people’s lives, such as whether to approve a loan or grant a job interview. If these decisions are not made fairly and accurately, they can have negative consequences for people.

Legal liability: AI models can be used to make decisions that can lead to legal liability for businesses. For example, if an AI model is used to make decisions about lending money and the model discriminates against certain groups of people, the business could be sued for discrimination.

Damaging reputation: AI models can make mistakes, and these mistakes can damage the reputation of a business. For example, if an AI model is used to make decisions about hiring and the model makes a mistake that results in the hiring of an unqualified candidate, the business could be damaged by negative publicity.

AI TRiSM can help insurance companies mitigate these risks. The framework provides guidance on how to:

– Govern AI systems: This includes setting policies and procedures for the development, use, and deployment of AI systems.

– Assess the risks of AI systems: This includes identifying potential risks, such as bias, discrimination, and security vulnerabilities.

– Mitigate the risks of AI systems: This includes implementing controls to reduce the likelihood and impact of risks.

By following the AI TRiSM framework, insurance companies can help ensure that AI is used in a responsible and ethical way. Businesses that are not proactive in ensuring AI TRiSM may fall behind their competitors. Businesses that are proactive in ensuring AI TRiSM can gain a competitive advantage by developing and using AI models that are more trustworthy, fair, reliable, robust, effective, and secure than those of their competitors.

Part 2: Implementation Of AI TRiSM on Generative AI Stack

The basic features of AI TRiSM encompass governance, trustworthiness, fairness, reliability, robustness, efficacy, and data protection. However, it is important to recognize that the successful implementation of AI TRiSM requires a triage of people, policies, and platforms.

Addressing the platform aspect, organizations need to establish a solid technological foundation to support AI TRiSM initiatives. This involves leveraging advanced AI platforms and infrastructure that provide capabilities for model development, deployment, monitoring, and management. The platform should facilitate the integration of AI TRiSM principles and tools, allowing for seamless implementation and adherence to policies.

Moving on to the people aspect, organizations must foster a culture of responsibility and accountability. This involves ensuring that individuals across different roles and levels of the organization understand the importance of AI TRiSM and are actively involved in its implementation. From executives to data scientists, everyone should be aware of their responsibilities in adhering to ethical practices, upholding governance policies, and addressing potential biases or risks associated with AI models.

Lastly, policy plays a critical role in guiding the implementation of AI TRiSM. Organizations need to establish clear and comprehensive policies that encompass ethical considerations, data governance, privacy protection, and model validation. These policies should align with the organization’s values and objectives, ensuring that AI models are used responsibly and in accordance with legal and regulatory requirements.

In summary, the successful implementation of AI TRiSM requires a holistic approach that encompasses people, policy, and platforms. By establishing a robust technological foundation, fostering a culture of responsibility, and implementing comprehensive policies, organizations can effectively address the governance, trustworthiness, fairness, reliability, robustness, efficacy, and data protection aspects of AI models. This triage approach ensures that AI TRiSM is ingrained in the organization’s practices and enables the responsible and ethical deployment of AI technologies.

Platform Infrastructure: Implementing on Generative AI Stack

To integrate AI TRiSM tools and automation into a Generative AI platform, it is crucial to understand the rapidly evolving infrastructure stack of Generative AI implementation. The process begins with the foundation model, which can be open or closed, trained on extensive datasets, and capable of performing a wide range of tasks. Open-source models offer customization flexibility, greater transparency into training data, and increased control over costs, outputs, privacy, and security, albeit at higher setup and training costs. On the other hand, closed source models like GPT-4 provide managed infrastructure and compute environments, offering more pre-trained capabilities and value through APIs. However, closed-source models lack transparency, making it challenging to explain and fine-tune their outputs. Open-source models offer advantages in terms of community-driven innovation, cost management, and trust.

Next in line is fine-tuning, the process of adjusting parameters in an existing model by training it on a curated dataset to specialize for a specific use case. Enterprises utilize labeling tools and proprietary data to build their own AI advantage and curate clean datasets, thereby accelerating the training process and improving accuracy.

Data storage becomes crucial for long-term model memory and data retrieval. Vector databases have emerged as a robust solution for model training, retrieval, and recommendation systems. With the rapid pace of innovation, semantic search and retrieval technology continually evolves, offering improved efficiency and diverse application coverage.

Model Supervision is an integral part of the current MLOps stack. It encompasses monitoring, observability, and explainability, which are different steps in evaluating models during and after their deployment in production. Model monitoring involves tracking performance, and identifying failures, outages, and downtime. Observability focuses on understanding system health and determining the reasons behind good or poor performance. Explainability aims to decipher outputs, explaining why a model made a specific decision. Model Supervision emphasizes transparency by ensuring that AI models provide clear explanations for their decisions or predictions and are regularly checked to avoid biases. However, closed-source models present challenges in supervision and explaining hallucinations due to limited access to training data.

Model Safety, Security, and Compliance are becoming increasingly important as companies deploy models in production. To establish trust in generative AI models, regular checks against fairness tests are essential, using a suite of tools for accurate evaluations of model fairness, bias, and toxicity (generating unsafe or hateful content). Teams deploying models require tools that help implement their own guardrails. Advanced features include the ability to generate mathematically explainable models that identify cause-and-effect relationships, analyze large amounts of data, and identify patterns and relationships not immediately apparent to humans.

Threats such as extraction of sensitive data, poisoned training data, and leakage of training data (especially sensitive third-party data) pose major concerns. New kinds of firewalls for LLMs (Large Language Models) are being introduced to protect against prompt injection (using malicious inputs to manipulate outputs), data leakage, toxic language generation, and other vulnerabilities. Privacy is essential to safeguard the data used for training or testing AI models. AI TRiSM aids businesses in developing policies and procedures to collect, store, and use data in a manner that respects individuals’ privacy rights. As AI models often deal with sensitive data, any security breaches could have severe consequences, making application security a vital aspect. AI security ensures models are secure and protected against cyber threats. Hence, organizations can utilize TRiSM’s framework to develop security protocols and measures to prevent unauthorized access or tampering.

Model operations involve establishing processes and systems to manage AI models throughout their lifecycle, from development and deployment to maintenance. Maintaining the underlying infrastructure and environment, such as cloud resources, is also a part of ModelOps to ensure optimal model performance.

Policies: Maximizing business outcomes through robust AI TRiSM

To maximize business outcomes through robust AI TRiSM, enterprises must prioritize governance and security policies to safeguard sensitive data and ensure responsible deployment. Referring to the basics of Data Engineering, the three pillars of trust in data users – infrastructure resources, data security and privacy, and access and data provisioning – are crucial considerations in this regard.

Firstly, addressing infrastructure resources is essential in the Generative AI stack. Ensuring robust and scalable infrastructure resources support the AI systems’ operations is vital for reliable and efficient performance.

Secondly, data security and privacy policies are of utmost importance. Data holds immense value, and AI models heavily rely on it for accurate predictions and decisions. Companies must prioritize data protection to prevent unauthorized access, misuse, and theft of the data used by their AI systems. Implementing encryption, access control, and data anonymization can effectively safeguard data while ensuring compliance with data privacy regulations. Tailoring data protection methods to different use cases and components of AI models is crucial, considering that specific requirements may necessitate additional security measures.

Lastly, access and data provisioning policies play a significant role in AI TRiSM. Ensuring appropriate access controls, authentication mechanisms, and data provisioning practices are in place is essential to maintain the integrity and confidentiality of sensitive data. Companies should establish clear guidelines and procedures for granting access to data and ensure that authorized users have the necessary permissions to work with AI models while preventing unauthorized access or data leakage.

By focusing on these pillars of trust, companies can enhance their AI TRiSM efforts and protect customer privacy and reputation. Through the implementation of robust infrastructure, data security measures, and access and data provisioning policies, organizations can foster a culture of trust, transparency, and responsible data usage. This not only safeguards the interests of customers but also enables companies to leverage the full potential of AI for achieving their business objectives effectively and ethically.

People: Setting up an organizational task force

Ensuring AI trust, reliability, and security management within an organization is a collective effort that heavily relies on the active participation and commitment of its people. From executives to data scientists, each individual plays a crucial role in fostering a culture of responsibility, implementing robust practices, and upholding ethical standards to mitigate risks associated with AI technologies.

Businesses should start by setting up an organizational task force or dedicated unit to manage their AI TRiSM efforts. This task force or dedicated team should develop and implement tested AI TRiSM policies and frameworks, understand how to monitor and evaluate the effectiveness of those policies, and establish procedures for responding to any changes or incidents that may arise.

Given that various tools and software are used to build AI systems, it is essential for many stakeholders, including tech enthusiasts, data scientists, business leaders, and legal experts, to participate in the development process. Bringing together different experts allows for the creation of a comprehensive AI TRiSM program, as they possess a deep understanding of both the technical aspects of AI and the legal implications involved. For example, a lawyer could provide advice on compliance and liability, a data scientist could assess the data needed to train the AI, and an ethicist could develop guidelines for the responsible application of the technology.

By actively involving diverse expertise and perspectives, organizations can establish a solid foundation for AI trust, reliability, and security management. This collaborative approach ensures that legal, technical, and ethical considerations are effectively addressed, promoting transparency and responsible AI practices throughout the development and deployment of AI systems.

Finally, the current state of innovation in Generative AI signifies its infancy, with technology rapidly evolving at an astonishing pace. Although the challenges are undeniable, this evolving landscape presents tremendous opportunities for further advancements in the near future. As organizations navigate the complexities of AI trust, reliability, and security management, it is crucial to harness the collective expertise of individuals across different roles and disciplines. By fostering a culture of responsibility, implementing robust practices, and upholding ethical standards, we can shape the future of Generative AI, unlocking its vast potential while ensuring its responsible and secure integration into various domains. As we witness the remarkable progress in Generative AI, we can anticipate a future filled with even more remarkable innovations in this rapidly evolving field.

Originally posted on Linked-in: