Increasing AI Adoption in Digital Health Raises Multifaceted Risks: Beazley Report
A recent "Digital Health & Wellness 2024" report by Beazley has revealed that 86% of digital health firms are planning to amplify their utilisation of artificial intelligence (AI) for diagnosing and treating patients. Beazley's findings shed light on widespread concerns amongst industry executives about AI's trustworthiness, potential biases, and intellectual property (IP) theft. Specifically, the report states that 80% of these executives question AI's reliability, 78% are wary of bias, and 79% are apprehensive about IP risks.
Despite growing reliance on AI technologies, the research identifies a considerable gap in risk protection for digital health companies. Fewer than one-third (30%) of these companies have secured tailored insurance coverage mitigating risks associated with bodily injury tied to technology. This statistic underscores a critical need for adequate insurance as AI integration accelerates in the sector.
Conducted among 600 industry executives across Europe, North America, and Asia, the survey reveals that digital health companies are grappling with additional issues beyond AI concerns, particularly regarding supply chain and recruitment. Notably, 29% of respondents cited supply chain difficulties, and 28% highlighted recruitment problems. These challenges have augmented significantly since 2022, when only 17% and 16% of executives flagged them as significant impediments to growth. Additionally, the survey revealed that fewer than half (43%) of firms anticipate business growth in 2024, though expectations vary by region.
Cybersecurity and competency risks also remain at the forefront of executives' concerns. According to the survey, 35% of respondents emphasised the threat of cyber incidents, such as ransomware and phishing, marking an increase from 27% in 2022. Additionally, worries about the competency of AI-driven treatments have surged, with 38% of executives expressing concern that their firms' treatment or advice might not align with advertised standards, up from 24% in 2022.
Evan Smith, Product Leader for Global Healthcare and Specialty Risks at Beazley, highlighted the complexities introduced by deep learning algorithms: “Deep learning algorithms offer great benefits but also pose substantial risks. AI often functions as a ‘black box,’ making it difficult to identify and correct bias or fully trust its recommendations. Our research shows that many businesses are not equipped with the necessary insurance coverage to protect against these evolving risks.”
Several industry executives, including Keri Marmorek, Claims Team Leader for Healthcare at Beazley, pointed out the dual nature of AI's risks and rewards. As stated by Marmorek, "With 87% of US digital health companies planning to expand their AI use for patient care, we anticipate a rise in claims." Marmorek further emphasised the importance of partnering with specialist insurers who understand the complexities of both cyber and healthcare risks to navigate the transformative landscape AI continues to shape.
As digital health firms proceed with integrating AI into their operations, formulating comprehensive risk management strategies will be crucial to handle the fast-evolving landscape effectively. This will involve ensuring adequate insurance coverage against both new and existing risks associated with advanced technologies.
The insights from the Beazley report underscore the need for digital health companies to attentively balance innovation with strategic risk management to foster sustainable growth and reliability in AI-driven healthcare solutions.
Source: Noah Wire Services