One would think there is going to be a lot of fine print in these policies.
From PYMNTS.com, May 11:
Lloyd’s of London has debuted an insurance product for companies dealing with artificial intelligence (AI)-related malfunctions.
As the Financial Times (FT) reported Sunday (May 11), this launch is happening as the insurance industry tries to capitalize on concerns about the risk of losses from AI chatbot errors or hallucinations.
The policies are offered through a startup called Armilla and will cover the cost of court claims against a business if it is sued by a customer or other third party harmed by an underperforming AI product, the report said.
As the FT noted, while companies have embraced AI to increase efficiency, some tools, such as customer service bots, have yielded embarrassing, costly mistakes due to hallucinations, or when an AI model makes things up but delivers this information with confidence.
As PYMNTS has written, the consequences of acting on hallucinated information can be severe, leading to flawed decisions, financial losses, and damage to a company’s reputation. There are also difficult questions surrounding accountability when AI systems are involved.
“If you remove a human from a process or if the human places its responsibility on the AI, who is going to be accountable or liable for the mistakes?” asked Kelwin Fernandes, CEO of NILG.AI, a company specializing in AI solutions, in an interview with PYMNTS last week....
....MUCH MORE
