Informed Insurance

The home of thought leadership by

Informed Insurance

Predictions
Or
Or
Technology

Prediction: All professions: Professionals will continue to grapple with the rapid evolution of AI

Technology
Professional Liability
LinkedIn Email Share this prediction
Prediction

AI has the potential to reduce the number of mundane tasks junior professionals must deal with, enhance efficiencies and reduce the incidence of human error, which is a significant cause of claims. The advantages are obvious, but they must be balanced against the risks, primarily through safeguards to check outputs. Recent well publicised cases have demonstrated the legal and regulatory risks inherent in using AI that will impact all professional services firms. As AI technology advances, professionals are having to keep pace with its developing capabilities and manage the risks through governance and risk management. Professional service firms should be acting now to assess their risks by developing internal policies, issuing guidance and training to their staff and structuring methods to ensure compliance. Firms will also be considering the cover that their professional indemnity insurance provides, how the policy will respond, for example to multiple errors caused by a failure in the technology, and whether there are any gaps in cover. AI is here to stay and the question therefore is just how we manage the potential risks.

Back to Technology