When Insurance Companies Use AI Against You
How Technology Is Changing the Claims Process
I’m Brad Parker, the attorney you want but hope you never need. After more than 35 years fighting for injured people, I’ve seen how quickly insurance companies change when it benefits them. Lately, that change means putting artificial intelligence between you and the compensation you deserve. When decisions are driven by algorithms instead of real judgment, valid claims can be delayed, denied, or undervalued in ways that cross into bad faith. We believe the fight for fairness has to keep up, and we want you to understand what you can do if this happens to you.
Why AI Decisions Can Lead to Unfair Results
Insurance companies claim AI helps process claims more efficiently, but it can also create new risks for policyholders. Many systems make decisions without clear explanations, and some adjusters simply accept an algorithm’s recommendation instead of conducting an independent review. When AI is built on flawed or biased data, it can lead to unfair denials or underpayments. It also complicates accountability, with insurers, adjusters, and software providers shifting blame when mistakes occur. These practices can support a bad faith claim when insurers use AI in unreasonable or arbitrary ways to avoid paying what they owe.
What Bad Faith Looks Like in the Age of AI
A bad faith claim arises when an insurance company unreasonably investigates, evaluates, or settles a covered claim. In addition to policy benefits, victims may recover other damages, attorney’s fees, and, in some cases, punitive damages. Today, bad faith investigations must also examine the role of AI. Did the insurer rely on an algorithm without meaningful human review? Was the system built on flawed or biased data? Is there a pattern of unfair denials or underpayments? If an insurer knowingly uses a reckless or opaque process that harms policyholders, that may constitute bad faith. Insurance companies cannot avoid responsibility by blaming a computer, the law still requires their decisions to be reasonable.
How We Challenge AI-Driven Denials
At Parker Law Firm, we fight AI-driven claim denials with skilled litigation and modern technology. We push for transparency, examining the algorithms, training data, and rules behind automated decisions. By identifying patterns across claims, we can uncover systemic underpayments or unfair practices. We also work with data and AI experts to explain these issues to juries and hold insurers accountable when adjusters rely on machines instead of independent judgment. These strategies have helped us secure full recoveries for our clients.
What You Should Do If You Suspect an Unfair Denial
If your claim has been denied or undervalued and you think AI may have played a role, it’s important to act quickly. Start by holding on to everything. Save emails, letters, screenshots, and your policy, and keep notes of every call, including who you spoke with and when. Then ask for a clear, written explanation of their decision, and don’t hesitate to ask if an automated system was involved. You should also request a copy of the company’s internal file on your claim, because that’s often where problems show up. Most importantly, talk to a legal team that understands both bad faith law and the technology behind these systems. You need someone who can push for answers and turn that technical evidence into a strong case.
Why Regulators Are Starting to Pay Attention
You should also know that government regulators are starting to pay attention. Rules are being developed to require more explainability and transparency for AI decisions in insurance. While these changes are happening, the strongest tool you have right now is the power to hold them accountable in court. Not every personal injury lawyer is prepared for this fight. You need a team that combines courtroom ferocity with technical fluency. Our firm’s decades of experience battling insurers, combined with our track record of demanding transparency, positions us to effectively take on AI-driven bad faith.
Holding Insurance Companies Accountable Moving Forward
AI will continue to shape how insurance companies operate. It can be a tool for fairer outcomes, but left unchecked, it can also make things much more unfair. At Parker Law Firm, we will not let technology become a shield for injustice. We fight tirelessly for you, seeking justice and holding insurers accountable, whether the decision is made by a human or an algorithm.
You Don’t Have to Face This Alone
We approach every case by protecting our client’s immediate needs while we build the record to prove misconduct and pursue full accountability. Call us. We treat you like family, and there is no fee unless we win. We will put every resource to work to get you the justice and compensation you deserve.
