Insurance companies are balking at insuring anything AI – from risks involving companies using AI to generate content, make decisions, or run processes, to the sheer idea of using AI in the first place.
Major insurers including Great American, Chubb, and W. R. Berkley are asking U.S. regulators for permission to exclude widespread AI-related liabilities from corporate policies.
Make no mistake – this is a huge issue not just for companies building AI models and AI-powered apps, but for any company using AI in their processes. Simply put, if you are using AI and something goes wrong (say, you are an accountant and your use of AI in accounting resulted in an error in your client’s tax return), you – not the software vendor, not the AI model your software vendor is using – are liable to your client. This could prove to be a major hurdle to overcome when it comes to the widespread adoption of AI-powered workflows and systems.
↗ AI is too risky to insure, say people whose job is insuring risk
