Generative AI (GenAI) is an emerging technology that is becoming increasingly prevalent in various aspects of our lives. This technology has the remarkable ability to process large amounts of information, automate tasks, aid in creative endeavors, and summarize conversations and meetings. GenAI is a type of deep machine-learning that uses algorithms to generate new data that appears to be created by a human. To achieve this, the algorithm is trained using extensive datasets as inputs. Unlike older forms of AI that focused on prediction, such as autocorrect functions, GenAI goes beyond prediction and produces new data with a human-like touch. In the field of healthcare, GenAI can be utilized to assist in diagnostics, reduce medical errors, provide valuable insights for medicine management and new disease analysis, and even summarize doctor-patient conversations, saving time in creating clinician notes.
Implementing GenAI: Healthcare companies have two options when it comes to implementing GenAI. They can either build their own GenAI model, which requires substantial investment and expertise, or they can work with a GenAI provider. The latter option is more feasible for most healthcare companies, as it allows them to utilize a base model provided by the GenAI provider and customize it to their specific needs. This approach also enables them to use their own data to further train the model, ensuring its relevance and accuracy.
Managing risks: While GenAI offers immense potential, it also comes with risks that need to be carefully managed. Healthcare companies must understand how the provider’s model was developed and what data and inputs were used in the process. It is crucial to ensure that all necessary authorizations, rights, and licenses were obtained and that the model does not infringe on intellectual property or privacy rights. Healthcare companies should also consider the permissions required to use internal data for training the GenAI model, taking into account privacy and confidentiality concerns.
Insurance considerations: As GenAI becomes more prevalent in healthcare, the insurance industry is taking notice of the potential risks associated with its use. Insurance claims related to GenAI malfunction, incorrect advice or decisions based on faulty AI research, and failure to oversee risks are areas of concern. It is important for companies to review their insurance policies and assess the coverage for these risks. Intellectual property infringement suits may have limited or no coverage in existing policies. Involving insurance agents or brokers early in the decision-making process can help ensure that the company’s specific situation is assessed with a multidisciplinary approach.
GenAI holds great promise in revolutionizing the healthcare industry. However, it is essential for healthcare companies to understand and manage the risks that come with it. By implementing effective risk management strategies, healthcare companies can harness the benefits of GenAI while minimizing potential pitfalls. Check out our healthcare practice for more ways to minimize risks.
