Armilla AI Launches Armilla Guaranteed to Address Trust and Risk Concerns in AI
Enterprises in various sectors are eager to adopt new AI tools and technologies. However, concerns about trustworthiness and risks are holding them back. To tackle this challenge, Armilla AI’s insurance spinoff, Armilla Assurance, has recently unveiled Armilla Guaranteed, a warranty service that aims to provide certainty regarding the performance of AI products.
Addressing Liability in AI Systems
Artificial intelligence and machine learning-based systems are no longer hypothetical or rare. Recent events have demonstrated the potential liability of these systems. For instance, Facebook faced a lawsuit over discriminatory algorithms, insurance provider State Farm faced a racial discrimination class action, and Wells Fargo was accused of discriminating against black individuals in offering home loans. Karthik Ramakrishnan, the co-founder and CEO of Armilla Assurance, explained in an interview with VentureBeat, “The lawsuits have already started… if you look at them as a whole, there’s a whole host of these liabilities that are appearing today.”
The use of automated algorithms for decision-making is at the root of these complaints. To address these concerns, enterprise decision makers are urged to invest in trust and safety products like Armilla Guaranteed. The new offerings from Armilla consist of two main pillars:
- An independent assessment of AI models through Armilla’s evaluation platform, which confers a “verified” status to algorithm developers after a successful review.
- A warranty, Armilla Guaranteed, that protects buyers if a “verified” model fails to meet defined key performance indicators (KPIs). If a guaranteed model falls short of its promised KPIs, the buyer will be reimbursed the license fee through Armilla’s reinsurance provider partners Swiss Re, Greenlight Re, and Chaucer.
“Even for the initial adoption of AI, we need to have some of these early solutions and insurance even though it’s the last mile. We do need them now,” said Ramakrishnan. Importantly, Armilla Guaranteed is not liability insurance but rather a warranty product that allows improved evaluation of models.
Increased Confidence and Protection
The goal of Armilla Guaranteed is to give both vendors and customers greater confidence in AI solutions by directly addressing issues of quality, accuracy, and risk. Models that pass the assessment through the Armilla platform will receive the “Armilla Verified” badge. The evaluation process involves both qualitative and quantitative analysis of models tailored to their specific use case. Ramakrishnan explained, “What we bring to the table is the underwriting expertise. The risk assessment of these models, quantifying that risk and pricing that risk appropriately.”
The benefits of Armilla Guaranteed are already being recognized by AI-driven medical reimbursement platform BUDDI AI. Ram Swaminathan, CEO and Co-Founder of BUDDI AI, expressed his satisfaction, stating, “AI-driven automation in the healthcare industry is riddled with risks… working with Armilla has been a defining moment.” BUDDI AI combines deep learning algorithms with sophisticated systems to convert patient records into medical codes used by insurance companies. With the backing of Armilla’s product verification service and the Armilla Guaranteed warranty, BUDDI AI can offer contractual guarantees of over 95% accuracy on medical codes and insurance claims, reducing denials by 60% for more than 70% of the monthly volume.
By addressing concerns about AI quality and risks, Armilla Guaranteed aims to boost the adoption of responsible and trustworthy AI solutions. The inclusion of insurance backing provides vendors and customers with greater confidence and protection. Swaminathan expressed his relief, “We’ve been missing a shield to protect us from this inherent risk and give our customers comfort for those ‘what if’ scenarios. This warranty offering is what the AI industry has been waiting for and has helped us greatly in cutting the sales cycles with hospitals.”
