Navigating AI Liability: Insurers Draw the Line
The landscape of insurance is shifting as major companies like AIG, WR Berkley, and Great American introduce policy exclusions related to artificial intelligence failures. This move comes in response to costly incidents that have heightened concerns about systemic risks in the industry. Key highlights include:
- New Policies: Insurers seek approval to deny claims tied to AI usage, including chatbots.
- High-Stakes Errors: Google faces a $110 million lawsuit over AI inaccuracies, illustrating the severe consequences of mismanaged technology.
- Risk Assessment Challenges: Insurers struggle to quantify liabilities due to unpredictable AI outputs, termed as a “black box.”
In a rapidly evolving industry, reliance on AI is becoming more burdensome for businesses. As these policies take shape, understanding the implications is vital.
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