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Insurance for AI: Easier Said Than Done

In the past few months, many friends have pitched or asked me about insuring AI risk.

all carry insurance — specifically, an Errors & Omissions or Professional Liability policy that covers them if they make a costly mistake on the job and get sued by a client. I think the likelier path is that businesses will adopt AI while maintaining some risk-reward equilibrium: steering clear of the use cases with the most severe downside risks, and leaving humans in the loop where appropriate. The insurer would evaluate the characteristics of the AI company — industry, size, safety and testing practices, etc., and look at their service agreements with customers to figure out what kind of risk they’re on the hook for.

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