22 votes

Insurers retreat from AI cover as risk of multibillion-dollar claims mounts

4 comments

  1. [4]
    vord
    Link
    Archive I find it most interesting that the downfall of the AI bubble might be businesses losing insurance, or seeing much higher premiums, due to use of generative AI and the risk of insanely...

    Archive

    I find it most interesting that the downfall of the AI bubble might be businesses losing insurance, or seeing much higher premiums, due to use of generative AI and the risk of insanely costly mistakes.

    My former employer wouldn't sign on with any IT vendor unless they also provided a million-dollar insurance policy in the contract if their product resulted in a data leak or other security nightmare.

    Such a potential risk significantly alters the TCO and thus the viability of AI products to the corporate sector.

    20 votes
    1. [2]
      DynamoSunshirt
      Link Parent
      Honestly, this needs to happen. 10 years ago. I guess it's at least a silver lining from all of this AI garbage: maybe companies will finally start to worry about data breaches? If we're lucky, we...

      Honestly, this needs to happen. 10 years ago. I guess it's at least a silver lining from all of this AI garbage: maybe companies will finally start to worry about data breaches? If we're lucky, we might even get US banks to start supporting non-SMS 2FA!

      10 votes
      1. vord
        Link Parent
        This is an old policy of theirs. Schools do not like being in the news for data leaks. When LastPass leaks happened, they dropped them like a sack of potatoes.

        This is an old policy of theirs. Schools do not like being in the news for data leaks.

        When LastPass leaks happened, they dropped them like a sack of potatoes.

        1 vote
    2. skybrian
      Link Parent
      On the other hand, open source projects come with zero insurance coverage. This seemed rather odd to me when the lawyers for the company I was working for demanded an indemnity clause in the...

      On the other hand, open source projects come with zero insurance coverage. This seemed rather odd to me when the lawyers for the company I was working for demanded an indemnity clause in the contract to buy licenses from IntelliJ, but nothing like that was needed to use Eclipse, but that's how big companies do things sometimes.

      I imagine if management really wants to take a risk, they'll find a way.

      2 votes