2026-09-18 · Source: Insurance Journal
Summary in 3 Points • Morningstar Inc. survey shows 25% of asset owners now view AI's environmental impact as a risk, up from 12% last year • 60% of respondents are concerned about AI-driven energy costs and inflation due to data centre demands • Companies like Anthropic PBC and OpenAI advocate for slowing AI development to address safety concerns --- Asset owners are increasingly worried about the environmental and societal impacts of **artificial intelligence**, as revealed by a recent report from **Morningstar Inc.** The survey, which included over 500 pension funds, family offices, endowments, and sovereign wealth funds, found that 25% of respondents now see the environmental impact of AI as a risk, a significant increase from 12% the previous year. Additionally, 60% of those surveyed expressed concerns about the rising energy costs and inflation driven by AI's demand for data centres and power generation. The report also highlighted the ethical implications of AI in business and its potential to disrupt the labour market, with companies like **Anthropic PBC** and **OpenAI** calling for a slowdown in AI development to prioritise safety. For the **London Insurance Market**, these findings have direct implications for **environmental liability** and **energy insurance** lines, where increased scrutiny of AI's carbon footprint could influence underwriting criteria. As asset owners, including those with significant investments in the London Market, express concerns over AI's environmental impact, insurers may need to adjust their risk models to account for potential increases in energy costs and carbon emissions. The involvement of companies like **Anthropic PBC** and **OpenAI** in advocating for AI safety measures also suggests a potential shift in regulatory landscapes that could affect **technology liability** coverages. **Underwriters** and **brokers** in the London Market should consider the evolving risk landscape associated with AI technologies, particularly in terms of energy consumption and environmental impact. As asset owners scrutinise AI investments, there may be increased demand for insurance products that address these specific risks. **Risk managers** should evaluate their portfolios for exposure to AI-driven energy cost fluctuations and consider the implications of potential regulatory changes on their clients' operations. Additionally, the ethical and social dimensions of AI, such as job displacement, may require new risk management strategies to mitigate potential liabilities.