Insurers Uneasy About Covering Corporate AI Risks

Core Viewpoint - Major insurers are seeking to exclude artificial intelligence (AI) risks from corporate insurance policies due to the uncertainties and potential liabilities associated with AI technology [2][3][4]. Group 1: Insurers' Actions - Companies like AIG, Great American, and WR Berkley have requested U.S. regulators to allow them to offer policies that exclude liabilities related to AI tools [2]. - WR Berkley aims to block claims involving any actual or alleged use of AI, while AIG acknowledges that generative AI is a broad technology that may lead to increased claims over time [3]. - AIG has filed for generative AI exclusions but currently has no plans to implement them, although obtaining approval would allow for future implementation [3]. Group 2: Industry Perspectives - Insurers are increasingly viewing AI outputs as too uncertain to insure, with some, like Mosaic, declining to underwrite risks from large language models [4]. - The lack of clarity around liability in cases of AI-related errors raises significant concerns, as highlighted by industry experts [5][6]. - Businesses using AI tools often bear the blame for errors, as illustrated by incidents involving Virgin Money and Air Canada, where their chatbots caused reputational damage [7].