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TagLemonade

cold-fresh-lemonade-with-slices-of-ripe-lemons-stockpack-adobe-stock
Cold fresh lemonade with slices of ripe lemons.

Insurance Company Gives Sour AI Promises

Data collection and discriminatory algorithms are turning Lemonade sour

An insurance company with the quirky name Lemonade was founded in 2015 and went public in 2020. In addition to raising hundreds of millions of dollars from eager investors, Lemonade quickly attracted more than a million customers with the premise that artificial intelligence (AI) algorithms can estimate risks accurately and that buying insurance and filing claims can be fun: Lemonade is built on a digital substrata — we use bots and machine learning to make insurance instant, seamless, and delightful. Adding to the delight are the friendly names of their bots, like AI Maya, AI Jim, and AI Cooper. The company doesn’t explain how its AI works, but there is this head-scratching boast: A typical homeowners policy form has 20-40…