Kathmandu. Businesses around the world are facing increasing legal and financial risks as they adopt artificial intelligence (AI) faster than insurance companies. <\/p>\n
According to the report, authored by Gallagher, Rica, Katrina Hill, and Ed Pocock, many AI-related losses fall outside the scope of traditional policies such as cyber, business liability, and product liability insurance. This has exposed risks such as incorrect output, arbitrary decisions, model failure and inaccurate data. This can lead to legal claims even without cyberattacks or human error. <\/p>\n
The legal issues related to generative AI are growing rapidly. Businesses are also becoming increasingly worried. In a survey of 1,250 companies around the world, 57 percent identified AI errors and misinformation as major risks. More than half cited legal, reputational and data privacy concerns. <\/p>\n
According to the report, the onus often falls on the companies that use AI rather than the companies that create it. This indicates that existing insurance coverage is limited. <\/p>\n
Cyberpolicies can cover attacks related to AI, but they do not cover liability arising from AI outputs. Examples include defamation or copyright disputes. <\/p>\n
Insurance companies have begun to respond with special products. However, the report says that it is still not enough. “Therefore, businesses could incur huge losses if insurance coverage is not changed quickly and timely as the use of AI increases,” the report warns. \u2013Agency<\/p>\n","protected":false},"excerpt":{"rendered":"
Kathmandu. Businesses around the world are facing increasing legal and financial risks as they adopt artificial intelligence (AI) faster than insurance companies. According to the report, authored by Gallagher, Rica, Katrina Hill, and Ed Pocock, many AI-related losses fall outside the scope of traditional policies such as cyber, business liability, and product liability insurance. This […]<\/p>\n","protected":false},"author":16,"featured_media":288157,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[45031,45044,45159],"tags":[],"class_list":["post-295318","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banner-news-en","category-international-news-en","category-news-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/295318","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/users\/16"}],"replies":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/comments?post=295318"}],"version-history":[{"count":1,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/295318\/revisions"}],"predecessor-version":[{"id":295319,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/295318\/revisions\/295319"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media\/288157"}],"wp:attachment":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media?parent=295318"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/categories?post=295318"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/tags?post=295318"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}