Summary
This technical report addresses the emerging risks associated with artificial intelligence (AI) and the inadequacies of traditional insurance frameworks to cover these risks. It outlines the rapid deployment of AI technologies in various sectors and the resultant liabilities that organizations may face, which are not adequately addressed by existing insurance policies. The report details specific vulnerabilities inherent in AI systems, such as adversarial manipulation, data poisoning, and algorithmic bias, and discusses how these vulnerabilities can lead to significant legal and financial repercussions. It also highlights the growing trend of litigation related to AI, emphasizing the need for tailored insurance solutions that can effectively manage these unique risks. The document provides guidance on how organizations can design insurance products that align with the realities of AI failures, ensuring that they are better protected against potential liabilities. The intended audience includes underwriters, risk managers, and C-suite executives responsible for AI strategy and governance.
