AI Liability Exclusion: Insurers' Dilemma
Update: 2025-11-23
Description
Major insurance companies, including AIG, Great American, and WR Berkley, are seeking regulatory approval to exclude AI-related liabilities from corporate policies due to the unpredictable nature of AI models. Recent incidents, such as Googles false accusation of legal troubles and Air Canadas chatbot-created discount, highlight the potential for AI to generate costly errors and facilitate fraud. Insurers are concerned about systemic risk from thousands of simultaneous claims if a widely used AI model malfunctions. This situation underscores the need for adaptation in risk assessment and liability frameworks as AI becomes increasingly central to business operations.
The Daily News Now! — Every city. Every story. AI-powered.
Hosted on Acast. See acast.com/privacy for more information.
Comments
In Channel
Download from Google Play
Download from App Store
United States00:00
00:00
x
