As renewal season approaches, policyholders should be on the lookout for broad artificial intelligence exclusions across all lines of coverage. In the last year, news of insurance companies inserting increasingly expansive AI exclusions has spread.
Risks associated with AI are becoming increasingly widespread and sophisticated. Social engineering fraudsters can now mimic voices and create realistic deepfake videos that are entirely computer-generated. Professionals using AI tools to render services face increased consequences and scrutiny, such as the lawyers sanctioned for using “fake ChatGPT cases” in briefings submitted to the court.
The insurance industry is acting quickly to cut off these and other AI-related liabilities. From insurance services office forms targeting generative AI to the advent of an “absolute AI” exclusion, insurers have made their concern about AI risks well known. For companies whose business models are already inextricably intertwined with the use of AI tools, the potential for significant gaps in coverage is a real risk.
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