Artificial intelligence for risk analysis—A risk characterization perspective on advances, opportunities, and limitations

Abstract

AbstractArtificial intelligence (AI) has seen numerous applications for risk analysis and provides ample opportunities for developing new and improved methods and models for this purpose. In the present article, we conceptualize the use of AI for risk analysis by framing it as an input–algorithm–output process and linking such a setup to three tasks in establishing a risk description: consequence characterization, uncertainty characterization, and knowledge management. We then give an overview of currently used concepts and methods for AI‐based risk analysis and outline potential future uses by extrapolating beyond currently produced types of output. We end with a discussion of the limits of automation, both near‐term limitations and a more fundamental question related to allowing AI to automatically prescribe risk management decisions. We conclude that there are opportunities for using AI for risk analysis to a greater extent than is commonly the case today; however, critical concerns about proper uncertainty representation and the need for risk‐informed rather than risk‐based decision‐making also lead us to conclude that risk analysis and decision‐making processes cannot be fully automated.