DOES AI (ARTIFICIAL INTELLIGENCE) AFFECT MY PERSONAL INJURY LAWSUIT?

WHAT IS AI (ARTIFICIAL INTELLIGENCE)?

In simple terms, AI refers to computer systems designed to simulate human intelligence to perform tasks or solve problems. Because AI machines can learn from experience, they become “smarter” and more efficient over time by analyzing data and predicting future patterns. AI technology is used in a wide range of applications, including bank fraud detection, content creation, online “chat” support, driverless vehicles, rideshare services, virtual assistants such as Siri, Alexa and Google Assistant and countless more.

Like many technological advances, there are benefits and downsides to using AI, depending on the situation. A major disadvantage exists in the area of personal injury lawsuits, where auto insurance companies are offering victims low-ball settlements based on calculations made by an AI-based software program called Colossus.

Recommended reading: Do You Need A Lawyer For A Car Accident That Was Not Your Fault?

HOW DOES COLOSSUS USE AI TO CALCULATE SETTLEMENTS IN PERSONAL INJURY LAWSUITS?

Colossus is an AI-based software program that uses data provided by insurance companies to determine the value of personal injury claims. First, the adjuster answers a series of computer-generated questions based on more than 10,000 “rules” included in the software.

The questions cover numerous factors relating to an injury claim, including: 

• The nature and severity of the injury
• Diagnosis
• Necessary treatment such as surgery, hospitalization and medication
• Required rehabilitative therapy
• Pain level
• Follow-up treatment
• Recovery time
• Long-term or permanent impairment

Next, using a sophisticated algorithm, Colossus analyzes the data and assigns “severity points” for each factor. The point score is then converted to a dollar amount on which the insurance company bases its settlement offer.

Recommended reading: Don’t Miss Your Chance for Compensation: Understanding the Statute of Limitations for Michigan Car Accidents

HOW DOES COLOSSUS WORK AGAINST THE VICTIM?

The original model for Colossus was developed by a major insurance company in the 1990s for the purpose of determining the value of personal injury claims.

While the program may seem like a useful tool for streamlining claims processing, Colossus and other similar systems have serious drawbacks that favor insurance companies and put victims at a disadvantage.

Here are some of the ways Colossus and other AI programs result in unfair and insufficient settlements:

• Insurance companies can program the software to reduce all payouts by a certain percentage
• Intangible damages such as pain and suffering are often underestimated
• Information entered by adjusters may be incomplete or erroneous
• Adjusters obtain data from medical records that be missing vital elements of the claim
• The software does not provide accurate estimates for future damages such as lost income or wage reductions for individuals who cannot resume their previous jobs
• The system is not designed to assess damages for liability issues such as comparative negligence and other special circumstances
• Settlement amounts depend on the thoroughness and objectivity of the adjuster, who may be biased or lack necessary information
• Unjust value is placed on certain factors, such as how soon a victim went to the hospital after an accident   
• Selected injuries, such as broken bones, receive more “points” than other injuries that may be equally or more severe
• Because only specific data points and key words can be entered, determinations do not reflect the whole story or entirety of a victim’s losses   
• The computer algorithm is not designed to perform the same in-depth analysis as a human being
• Most insurance companies rely entirely on the determinations made by the computer system, resulting in millions of insufficient and unfair settlements

Recommended reading: Can An Injured Passenger In A Motorcycle Accident Sue For Compensation?

HOW AN EXPERIENCED ACCIDENT LAWYER CAN HELP YOU WIN THE COMPENSATION YOU DESERVE

You may be surprised to learn that Colossus assigns points based on the lawyer representing the victim. The system collects and analyzes data on individual attorneys and law firms, including how willing they are to take a case to trial, how often they win and the size of their verdicts and settlements.

Consequently, a higher point value is assigned to a claim when a law firm with a winning track record is involved.

In addition, an experienced lawyer knows how the Colossus system works, including its deficiencies and the ways it underestimates the value of a claim. This knowledge enables a skilled attorney to thwart the insurance company’s attempt to lowball the victim and obtain a settlement that offsets present and future losses, direct expenses as well as intangible damages.

Recommended reading: Is It Worthwhile To Hire A Detroit Car Accident Attorney?

WHICH INSURANCE COMPANIES USE COLOSSUS AI SOFTWARE FOR PERSONAL INJURY CLAIMS?

Colossus is used for claims evaluation at many of the major insurance companies, including:

• Aetna
• Allstate
• American Family Mutual Insurance
• American National Property and Casualty
• American Family Group of Madison
• Arrow Claims Management
• AXA Insurance
• Bishopsgate Insurance
• California State Automobile Assn.
• CNA
• Encompass (owned by Allstate)
• Esurance (owned by Allstate)
• Explorer Insurance Company
• Erie Insurance 
• Farmers Insurance
• Federated Insurance Group
• General Casualty Insurance Company
• Great American Insurance Company
• Grange Mutual Casualty
• Keystone Insurance
• Liability Line Insurance
• Metropolitan Group
• Motorist Mutual
• Ohio Casualty
• The Hartford
• MetLife Home and Auto
• State Auto Insurance (owned by Liberty Mutual)
• St. Paul Insurance
• Travelers Property Casualty Insurance
• USA Insurance
• Utica National Insurance Group
• Westfield Insurance
• Zurich Insurance

Recommended reading: Why Michigan Car Accident Victims Need Unlimited Personal Injury Protection (PIP) Benefits

YEARS OF PERSONAL INJURY EXPERIENCE AND A WINNING TRACK RECORD: THAT’S THE BERNSTEIN ADVANTAGE®

If you or a loved one is injured in a Michigan car accident, call us now. We believe technology should be used to help our clients, not work against them. While we have the latest legal software and computer programs, people – not PCs – are the heart of our firm.

When you hire us, your case is handled by skilled attorneys and a knowledgeable support staff, not a computer. We treat every client like family, and we use our extensive experience and vast resources to win the compensation you and your family deserve.

Car accident law is complicated, but finding the right Michigan auto accident attorney is simple.

Don’t let the legal clock run out. Start your case today by clicking on the link below or calling 1-800-CALL-SAM for a free, no-obligation consultation with a member of our legal team.