Insurance post- Who pays when AI gets it wrong in the boardroom?

Artificial intelligence is rapidly becoming part of everyday business decision-making. While much of the public discussion has focused on whether directors can rely on AI in the boardroom, a more practical question is beginning to emerge: what happens when AI-generated information influences a decision that later proves costly?

In a recent feature for Post, Duane Folkard, Lead Cyber Underwriter, and Sam Cornelius, Lead Management Liability Underwriter, explore the growing overlap between AI adoption, governance, cyber risk and management liability.

The article examines how AI-generated outputs are increasingly being used to inform decisions across organisations of all sizes. While these tools can deliver information quickly and confidently, businesses must consider how AI-generated recommendations are reviewed, challenged and evidenced, particularly when decisions may later be scrutinised by regulators, stakeholders or claimants.

The discussion also considers how AI-related governance risks may affect both cyber and management liability exposures. As organisations continue to integrate AI into operational and strategic processes, questions around oversight, accountability and decision-making frameworks are becoming increasingly important.

For advisers, insurers and business leaders alike, the challenge is not simply understanding what AI can do, but ensuring appropriate governance exists around how it is used.

Read the full article on Insurance Post to explore the implications for organisations, directors and the insurance market.

Read the full feature: Who pays when AI gets it wrong in the boardroom?