Updated guidance for actuaries on the use of AI and machine learning

Article summary

The Financial Reporting Council (FRC) has published revised Technical Actuarial Guidance: Models to support the expansion of artificial intelligence and machine learning (AI and ML) techniques in actuarial work and ensure compliance with Technical Actuarial Standard 100 (TAS 100). This guidance provides examples relating to model bias, effective communication, governance, and stability relating to the use of AI/ML models in technical actuarial work, highlighting the importance of TAS 100 in the context of AI and ML applications.