AI boosts insurance tech financing, deepfakes a risk, report says


Words reading "Artificial intelligence AI", miniature of robot and toy hand are pictured in this illustration taken December 14, 2023. REUTERS/Dado Ruvic/Illustration/File Photo

LONDON (Reuters) - Global financing for insurance technology (insurtech) firms rose 40% to $1.27 billion in the second quarter from the previous three months, helped by money going into AI-focused businesses, reinsurance broker Gallagher Re said on Thursday.

The use of artificial intelligence in insurance presents challenges, however, because of the risks of so-called "deepfakes" in fraudulent claims and of the exclusion of potential customers by AI models, Gallagher Re said in a report.

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