Insurers are introducing policies to cover financial losses stemming from AI chatbot errors. These policies aim to mitigate risks associated with AI's increasing role in business. The coverage addresses costs like legal fees and court damages resulting from underperforming AI tools.
Specifically, the policies cover scenarios where AI algorithms make errors, leading to financial losses for clients, intellectual property infringements, or regulatory violations. They also extend to damages from services provided by AI, including those arising from biased algorithms. Insurers are also offering Errors and Omissions coverage and endorsements that cover 'Machine Learning Wrongful Act'.
This move reflects the growing awareness of AI-specific risks and the need for tailored insurance solutions. As businesses integrate AI solutions, these policies offer a safety net against potential liabilities and financial repercussions caused by AI errors.
