AI is too risky to insure; experts warn of rising liabilities as insurers push to exclude AI-related risks.
Matilda
AI Is Too Risky to Insure Why “AI Is Too Risky to Insure” Is Becoming a Global Concern AI is too risky to insure, according to major underwriters who say current AI systems create unpredictable, black-box risks that traditional insurance models cannot cover. Companies adopting generative AI tools are now facing real-world liabilities—false claims, misinformation, and AI-enabled fraud—that insurers fear could trigger thousands of simultaneous losses. As regulators review insurers’ requests to exclude AI-related liabilities, businesses are left wondering whether their AI tools are becoming financial ticking time bombs. Image : Google Are Insurers Right That “AI Is Too Risky to Insure”? Insurers argue that AI is too risky to insure because outputs are often opaque, uncontrollable, and capable of causing large-scale, widespread harm. Cases like a chatbot inventing a discount, Google AI Overview generating false allegations, and deepfake executives stealing millions highlight how unpredictable AI failures have become. …
