Several lines of insurance coverage are seeing claims related to the use of artificial intelligence, but most policy wordings don’t specifically address the use of AI, according to a report by Arthur J. Gallagher & Co.
The report, released Monday and based on a survey of businesses and insurance professionals globally, found that cyber liability, product liability, employment practices liability and professional liability are the lines most likely to face AI-related claims.
One in five insurance respondents said a client suffered an AI-related loss in the past year, with just over half fully covered by insurance.
Some respondents said existing policy language was written for a “pre-AI world,” increasing the risk of coverage disputes, the report said.
“As was the case with cyber, a market-wide pivot towards new policy language that incorporates AI-related risks is unlikely to happen until or unless there’s a significant surge in claims or increased litigation involving AI-related losses,” the report said.
AI adoption continues to accelerate, with 63% of organizations in 2026 having AI operational in their business, up from 45% last year, the report said.
The top concerns about using AI are errors and hallucinations, followed by legal and reputational risks and data privacy risks, the report said.
Clinton Mora is a reporter for Trending Insurance News. He has previously worked for the Forbes. As a contributor to Trending Insurance News, Clinton covers emerging a wide range of property and casualty insurance related stories.