N.C. State: New Technique Helps AI Tell When Humans Are Lying - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Newswires RSS Get our newsletter
Order Prints
March 19, 2024 Newswires
Share
Share
Post
Email

N.C. State: New Technique Helps AI Tell When Humans Are Lying

Targeted News Service (Press Releases)

RALEIGH, North Carolina, March 19 (TNSres) -- North Carolina State University issued the following news release:

Researchers have developed a new training tool to help artificial intelligence (AI) programs better account for the fact that humans don't always tell the truth when providing personal information. The new tool was developed for use in contexts when humans have an economic incentive to lie, such as applying for a mortgage or trying to lower their insurance premiums.

"AI programs are used in a wide variety of business contexts, such as helping to determine how large of a mortgage an individual can afford, or what an individual's insurance premiums should be," says Mehmet Caner, co-author of a paper on the work. "These AI programs generally use mathematical algorithms driven solely by statistics to do their forecasting. But the problem is that this approach creates incentives for people to lie, so that they can get a mortgage, lower their insurance premiums, and so on.

"We wanted to see if there was some way to adjust AI algorithms in order to account for these economic incentives to lie," says Caner, who is the Thurman-Raytheon Distinguished Professor of Economics in North Carolina State University's Poole College of Management.

To address this challenge, the researchers developed a new set of training parameters that can be used to inform how the AI teaches itself to make predictions. Specifically, the new training parameters focus on recognizing and accounting for a human user's economic incentives. In other words, the AI trains itself to recognize circumstances in which a human user might lie to improve their outcomes.

In proof-of-concept simulations, the modified AI was better able to detect inaccurate information from users.

"This effectively reduces a user's incentive to lie when submitting information," Caner says. "However, small lies can still go undetected. We need to do some additional work to better understand where the threshold is between a 'small lie' and a 'big lie.'"

The researchers are making the new AI training parameters publicly available, so that AI developers can experiment with them.

"This work shows we can improve AI programs to reduce economic incentives for humans to lie," Caner says. "At some point, if we make the AI clever enough, we may be able to eliminate those incentives altogether."

The paper, "Should Humans Lie to Machines? The Incentive Compatibility of Lasso and GLM Structured Sparsity Estimators," is published in the Journal of Business & Economic Statistics. The paper was co-authored by Kfir Eliaz of Tel-Aviv University and the University of Utah.

* * *

Note to Editors: The study abstract follows.

"Should Humans Lie to Machines? The Incentive Compatibility of Lasso and GLM Structured Sparsity Estimators"

Authors: Mehmet Caner, North Carolina State University; and Kfir Eliaz, Tel-Aviv University and the University of Utah

Published: March 12, Journal of Business & Economic Statistics

DOI: 10.1080/07350015.2024.2316102

Abstract: We consider situations where a user feeds her attributes to a machine learning method that tries to predict her best option based on a random sample of other users. The predictor is incentive-compatible if the user has no incentive to misreport her covariates. Focusing on the popular Lasso estimation technique, we borrow tools from high-dimensional statistics to characterize sufficient conditions that ensure that Lasso is incentive compatible in the asymptotic case. We extend our results to a new nonlinear machine learning technique, Generalized Linear Model Structured Sparsity estimators. Our results show that incentive compatibility is achieved if the tuning parameter is kept above some threshold in the case of asymptotics.

* * *

JOURNAL: Journal of Business and Economic Statistics https://www.tandfonline.com/doi/full/10.1080/07350015.2024.2316102

* * *

Original text here: https://news.ncsu.edu/2024/03/helping-ai-detect-human-lies/

Older

68.5 Million Americans Don’t Have Dental Insurance – DentalPlans.com Celebrates 25 Years Of Improving Access To Dental Care

Newer

New York Life Names Todd Taylor Head of Life Insurance Solutions, Matt Wion Head of Retail Annuities

Advisor News

  • Health insurance premium tax bill advancing
  • The Medi-Cal money pit
  • The untapped potential of Qualified Longevity Annuity Contracts
  • NYC's fiscal outlook on downslide over budget gaps
  • Health insurance premium tax bill moving in Iowa House
More Advisor News

Annuity News

  • An Application for the Trademark “GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY” Has Been Filed by Great-West Life & Annuity Insurance Company: Great-West Life & Annuity Insurance Company
  • The forces shaping life and annuities in 2026
  • Variable annuity sales surge as market confidence remains high, Wink finds
  • New Allianz Life Annuity Offers Added Flexibility in Income Benefits
  • How to elevate annuity discussions during tax season
More Annuity News

Health/Employee Benefits News

  • Health insurance premium tax bill advancing
  • Families oppose bill locking in Iowa Medicaid privatization
  • The Medi-Cal money pit
  • State auditor approves new school health trust with at least 150 school districts on board
  • 5 KEY FACTS ABOUT MEDICAID PRESCRIPTION DRUGS
More Health/Employee Benefits News

Life Insurance News

  • Hulse, Murray
  • Murray Giles Hulse
  • Oaktree grabs control of Atlantic Coast Life Co. in blockbuster A-Cap deal
  • AM Best Removes From Under Review With Developing Implications and Downgrades Credit Ratings of Banner Life Insurance Company and William Penn Life Insurance Company of New York
  • The forces shaping life and annuities in 2026
More Life Insurance News

- Presented By -

Top Read Stories

More Top Read Stories >

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Elevate Your Practice with Pacific Life
Taking your business to the next level is easier when you have experienced support.

Your Cap. Your Term. Locked.
Oceanview CapLock™. One locked cap. No annual re-declarations. Clear expectations from day one.

Ready to make your client presentations more engaging?
EnsightTM marketing stories, available with select Allianz Life Insurance Company of North America FIAs.

Press Releases

  • RFP #T02226
  • YourMedPlan Appoints Kevin Mercier as Executive Vice President of Business Development
  • ICMG Golf Event Raises $43,000 for Charity During Annual Industry Gathering
  • RFP #T25521
  • ICMG Announces 2026 Don Kampe Lifetime Achievement Award Recipient
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet