Source: PYMNTS

PYMNTS reports on the insurance industry’s increasing engagement in covering losses caused by AI-related mishaps. The article describes how insurers are developing new products and underwriting practices to address risks posed by AI operational errors and failures. It highlights challenges in risk assessment, pricing, and claims management for AI technologies.

The piece explores legal and regulatory considerations insurers must navigate, including liability issues and the evolving nature of AI risks. It notes the rising demand from businesses for insurance solutions that protect against AI-induced financial damages. The report underscores the importance of collaboration between insurers, legal experts, and technologists to design effective coverage. It concludes that insurance will play a pivotal role in enabling safe and confident AI deployment across sectors.