Enterprises are adopting generative AI technology at extraordinary pace. What began as isolated experimentation within innovation teams has rapidly evolved into widespread operational deployment, with generative AI now assisting with drafting, data analysis, research, coding, customer interaction and internal decision-making.
The commercial rationale is easy to understand; organisations seek efficiency gains, faster turnaround times and the competitive advantage that comes from automating labour-intensive processes.
The challenge is that the governance structures needed to manage these tools responsibly have not kept pace with adoption.
Generative AI is reshaping business operations—but it also introduces new risks. From inaccurate outputs influencing critical decisions to regulatory exposure and liability gaps, organisations face challenges that traditional insurance policies may not cover.
Errors in AI-generated content, coding, or automated advice can lead to financial loss, compliance breaches, and reputational harm. Technology Errors & Omissions (E&O) insurance is becoming essential for businesses adopting AI, offering dedicated protection where vendor policies fall short.
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