What happens when the professional judgment your policy was built to protect is no longer entirely human? Artificial intelligence (AI), once a far-fetched idea, now sits at the centre of boardroom strategy. As adoption expands and corporations juggle the use of human and artificial intelligence, the liability exposures also change. Claims, regulatory scrutiny and coverage disputes are increasingly arising in circumstances that many management liability programmes were not originally designed to contemplate. Historically, AI-related exclusions developed in general liability and technology errors and omissions (E&O) forms, however the nature of the risk is shifting.
Today, AI systems inform or influence board-level decisions, professional judgment and regulatory disclosures. Functions that traditionally were reliant on the expertise and judgment on an individual are now often being made with input from various AI platforms. Traditional D&O policy language must therefore account for AI’s role in decision-making and the corporate structures used to govern it.
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