Insuring Against AI Risk: How Coverage Will Evolve | Podcast

Insurers and businesses alike are monitoring the development of artificial intelligence (AI) tools and weighing how best to manage associated risks, two Lockton Associates said on a recent Lewis Brisbois podcast.

“We’re counseling and advising clients from multiple industries, and so we’re seeing the broad spectrum of how AI is being used,” said Logan Payne, Director of Emerging Risk at Lockton, on Lewis Brisbois’ The AI Arena – Skate to the Puck podcast. These potential AI applications are vast (opens a new window), ranging from customer service and supply chain use cases for retailers, manufacturers and others to more complex diagnostic purposes in healthcare.

“We’re having discussions with our clients to say ‘How are you using it today? What are you planning? Where are there pilots that are being tested?’ And then trying to respond accordingly,” Payne said.

Insurers, meanwhile, are applying greater scrutiny of AI and seeking to better understand how policyholders are using various technologies, which will ultimately inform how coverage for AI develops and evolves. “We’re definitely seeing more question in the underwriting process and clients also who are aware of their own utilization pushing information,” said Ashley Jones, a Senior Vice President within Lockton Financial Services.

As new AI tools emerge and are adopted by businesses, it’s vital that they develop appropriate policies and procedures regarding their use, which starts with asking some basic questions. “Are our employees utilizing AI? Are we allowing them to do that? Are we going to flag or put up warning signs when there is utilization of certain platforms? Are we going to block other platforms? Going through that analysis and educating internally is an important step,” Jones said.

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