Chris Tully

Now to New Jersey, where proposed legislation could significantly change how insurers use artificial intelligence in claims decisions.

Assembly Bill 5494, introduced by Assemblyman Chris Tully, would restrict AI from making final decisions on claim denials in homeowners, auto, and flood insurance.

The bill centers on concerns about AI's potential for error, discrimination, and lack of transparency.

It calls for human involvement in claims review to ensure that policyholder claims are not denied solely by automated systems.