People whose job it is to underwrite risks say AI is too risky

What happens when the software everyone is racing to adopt becomes too risky for anyone to secure? according to Report from the Financial TimesWe’re about to find out.

Major insurers, including AIG, Great American, and WR Berkley, are asking US regulators for permission to exclude AI-related liabilities from corporate policies. One guarantor describes the output of the AI ​​models to the Financial Times as “like a black box.”

The story reminds us that the industry has good reason to be afraid. Google AI Overview Falsely accused a solar company of causing legal problems, sparking a crisis 110 million dollars They sued back in March. Air Canada faltered last year in respecting its discount Chatbot invented. Last year, fraudsters used a digitally cloned version of a senior executive to steal 25 million dollars From London-based design engineering firm Arup during a video call that looked completely real.

What really scares insurance companies isn’t huge payouts; It’s the systemic risk of thousands of simultaneous claims when a widely used AI model comes into play. As one Aon executive said, insurers can handle a $400 million loss for a single company. What they can’t handle is an AI mishap that causes them to lose 10,000 at once.