The increasing use of AI (Artificial Intelligence) has sparked a lot of conversation, along with a fair amount of confusion, about its current and future impact on our lives. Most people are familiar with everyday uses of AI technology, such as online shopping and interacting with Alexa and other virtual assistants. However, you may not realize how insurance companies use AI to offer lowball settlements in personal injury lawsuits.
Here is a guide to protecting your rights and receiving the compensation you deserve if another party’s negligence causes harm to you or a loved one.
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.
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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:
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.
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:
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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.
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Colossus is used for claims evaluation at many of the major insurance companies, including:
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.
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