On February 26, 2025 Aon hosted its Quarterly Insights Series: Navigating Artificial Intelligence in Chicago.

Aon panelists, plus experienced professionals from IBM, Microsoft and Greenberg Traurig shared insights into the current state of artificial intelligence (AI) risk management and the ability of AI to transform employee talent within organizations. The process to consider AI’s return on investment balanced against the risk landscape emanating from AI was further addressed by discussing risk mitigation strategies, including, in part, the availability of insurance products.

Key takeaways from the discussion:

• AI can drive benefits and productivity in the workplace. The workplace will evolve as optimization potential is realized, which will bring with it an opportunity to reimagine jobs given certain automation potentials.
  
  
• The purpose of AI is to augment – not replace – human intelligence.
  
  
• Opportunity (including “lost opportunity” from not considering AI) comes with risk emanating from contracts, litigation, laws and regulatory uncertainty.
  
  
  • Potential concrete risks include “hallucinations” (responses generated by AI that contains false or misleading information presented as fact), “deepfakes” (highly realistic but fake images, audio and videos), Intellectual property infringement, confidentiality of client information, data security/protection, AI misuses (i.e. lethal weapons/chemicals/infectious diseases), bias/discrimination, and autonomous products (i.e. self-driving cars, robotics, IoT appliances).
    
    
• The balance to get to market while responsibly deploying AI brings challenges, which can be addressed by best available risk management practices.
  
  
• Organizational risk mitigation steps may include taking an AI inventory, modelling frequency and severity of AI risks, establishing an End-to-End Review, Deployment and Audit Process, due diligence of vendors, understanding license terms (including contractual hold harmless and indemnity), and appointing an AI lead, with appropriate stakeholder collaboration, for your company.
  
  
• Some insurance carriers have started to introduce AI specific exclusions, while eight insurers (and climbing) offer AI specific insurance or endorsements. Insurance products such as technology errors and omissions, media liability, intellectual property, property, general liability, crime, product recall, directors and officers, employment practices liability, cyber and others may partially respond to some AI-related claims.
  
  

Change brings risk. As the AI-wave grips the economy and AI utilization increases across business sectors, responsibly deploying this powerful technology with sound risk strategies is of utmost importance.

Further end-stage risk mitigation strategies may include indemnification agreements and insurance products. To ensure maximum protection, it is imperative to have a broker who works with clients to identify and mitigate AI usage risk on a continuous basis, monitors and updates the potential sources of AI claims, identifies existing AI insurance coverage and gaps, and can negotiate best-in-class policy terms and conditions on your behalf across a variety of insurance products. It is possible to establish base AI risk management processes and procedures that grow with AI use.

If you have any questions about your AI coverage or are interested in obtaining AI coverage, please contact your Aon broker.

Watch Replay