min read
Dec 14

Why Insurance Agents Shouldn’t Put Client Data Into ChatGPT

Jon Corrin
Chief Executive Officer

Why Insurance Agents Shouldn’t Put Client Data Into ChatGPT

As artificial intelligence (AI) evolves each month since the popular release of OpenAI’s ChatGPT, insurance agents are quickly becoming some of the largest adopters of AI to help streamline operations. AI can be highly valuable in making operations more efficient and automating tasks for agents, but it poses a significant risk in protecting your client’s data. ChatGPT, a large language model (LLM / AI) built by OpenAI, excels in handling these tasks, but isn't designed to securely manage client data. In this article, I'll walk you through real-world examples of what could happen if you share client data with ChatGPT and why you should never do so! I’ll also delve into future options for handling client data securely with AI. 🚫

The Risk in Using ChatGPT for Sensitive Client Data

ChatGPT operates as a “shared model”, meaning the AI uses the same datasets for your organization as it would for mine. For instance, when I ask ChatGPT for dinner date ideas with my wife, it collects and retains that data in the same storage areas where you might ask it to extract insurance data from a client's policy declaration page. These “servers” are accessed by many users and are not tailored to meet strict regulatory requirements for handling sensitive data. This lack of privacy and compliance measures, combined with data retention concerns, can lead to breaches, identity theft, and financial fraud. 🛡️

Real-Life Consequences of Entering Client Data into ChatGPT

Identity Theft 🕵️♂️

If an insurance agent enters a client’s personal details, like full name, date of birth, social security number, or address into ChatGPT, and this data gets accessed by unauthorized parties, identity theft could ensue. A fraudster might use this information for opening new credit accounts, filing false health claims, or committing other identity frauds.

Financial Fraud 💸

Suppose details about a client’s financial status or insurance policies, including bank account numbers or policy specifics, are input into ChatGPT. In that case, this information could be exploited for financial fraud. Hackers or malicious entities could siphon funds from client accounts, apply for loans, or fraudulently purchase policies under the client’s identity.

Corporate Espionage 🕵️♀️

Discussing business-related information, such as trade secrets, upcoming deals, or internal strategies of a client company via ChatGPT, could lead to corporate espionage. Competitors might exploit this information for a competitive advantage, resulting in significant financial and reputational losses for the client’s business.

Insurance Fraud 🏥

Leaked details about a client’s insurance claims could be misused for filing false claims. For instance, a fraudster might use stolen medical information to file bogus health insurance claims, leading to financial losses for the insurance company and potential legal issues for the client.

Google DeepMind’s Repeating Word Hack

Google DeepMind

Google’s DeepMind, a leading AI research lab, demonstrated how secure “training data”, the data AI is trained on, could be exposed through clever prompting in conversations with ChatGPT. By asking ChatGPT to repeat a single word indefinitely, they found it could eventually respond with training data, possibly including secure data improperly fed into ChatGPT. Though this scenario is hypothetical, it underscores the risk of handling sensitive information in shared AI models. 🤖

What Can Insurance Agents Do When They Need to Use Client Data

The simple answer: don't use ChatGPT for client data. The more comprehensive solution involves using an AI model dedicated to your organization, like Microsoft’s Azure AI or a custom-built solution using open-source LLMs. At XILO, we've started developing our own AI model, designed to evolve with technology and provide secure, client-specific solutions without the risks associated with shared AI models. 🌐

Conclusion: Keep Exploring ChatGPT but Keep Client Data Out Of It

The takeaway is straightforward: insurance agents should look to enterprise AI solutions that emphasize security and privacy. While tools like ChatGPT demonstrate AI's potential, they lack necessary safeguards for client data. As AI technology advances, focusing on secure solutions that maintain client trust is paramount. Continue exploring AI's capabilities, but be mindful of the risks involved with client data. 🔐

Building a Community: AI For Insurance Agents

I’m passionate about exploring AI's role in insurance and am committed to fostering a community around this topic, named “AI For Insurance Agents”. If you're intrigued by AI's possibilities in the insurance sector, I invite you to connect with me on LinkedIn. Let's discuss and shape AI's future in our industry together. 🤝

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