An artificial intelligence tool that predicts who is at fault in insurance claims has been developed by top-50 firm BLM and the London School of Economics (LSE).
Foresight, which is one of seven digital tools launched by BLM, simulates a claims handler by weighing up different combinations of facts and evidence, such as the reliability of a witness.
The technology is further evidence of the automation of the claims process, with legal experts increasingly sidelined while algorithms and AI make decisions about the merits of a case and how it should be handled.
The Foresight tool is aimed primarily at claims handlers to help them reach earlier settlements and was developed for motor claims. However, BLM say it is ‘scalable and adaptable for other types of claim’.
Claims handlers answer a ‘limited set of questions’ on their desktops and receive a digital response. BLM say the tool mimics human decision-making but ‘takes away cognitive bias’.
Other tools created in conjunction with LSE include Pathfinder, which forecasts the outcome of trials, and Searchlight, which lets clients access live data relating to claims.
Post-graduate students and data scientists from LSE are working at BLM’s office and university professors are also involved in the project.
BLM senior partner, Matthew Harrington, said: ‘Our tools have been a long time in the making. We wanted to be confident about the potentially transformative impact they could have for our clients before we took them to market.’
Adrian Spencer, director of business services & improvement and leader of the firm’s analytics steering committee, said: ‘[It] is about being able to offer our clients the experience of an established law firm and smart solutions, which make claims handling more efficient.’
He added that the tools will reduce clients’ reliance on human experts.