Generative AI creates new insurance risks for corporations

As generative AI continues to transform the global economy, an emerging issue is how insurance policies will respond to the liability exposures posed by this new technology. Companies starting to incorporate generative AI into their business operations – or whose employees may be using it – should evaluate those exposures and their existing insurance programs to identify and address any gaps in coverage.

Coverage considerations related to early use of generative AI include the following:

Professional Liability/Errors & Omissions Insurance

That there are risks associated with using generative AI to answer questions or create work product has quickly become clear as soon as AI tools launched into the mainstream.  It is so common for current generative AI models to create erroneous output that lacks a factual basis that the phenomenon got a moniker – “hallucinations.”

Read more at Law.com