2026-10-01 · Source: Insurance Business US
Summary in 3 Points • RAND's report reveals that 84% of AI incidents involve misinformation or deepfakes, highlighting the current risk landscape. • 60% of US generative AI lawsuits focus on copyright violations related to training data, impacting AI developers significantly. • State legislatures have enacted 189 AI laws, primarily targeting nonconsensual content and automated decision-making practices. --- The RAND Corporation's recent report, 'The Insurability of Artificial Intelligence', outlines the current landscape of AI-related risks, revealing that 84% of incidents involve misinformation or deepfakes. The report highlights that while operational failures exist, they are overshadowed by issues related to fake content. Additionally, 60% of US generative AI lawsuits focus on copyright violations concerning training data, primarily affecting AI developers rather than deployers who use AI in various sectors. State legislatures have responded to the rise of AI incidents by enacting 189 laws, with a significant focus on nonconsensual intimate images and automated decision-making. These regulations are likely to generate claims related to privacy and employment practices, which could impact insurers and their underwriting strategies. The report suggests that the complexity of AI risks requires a shift in underwriting approaches, moving towards governance and model validation rather than traditional cyber insurance frameworks. For the London Insurance Market, the emerging risks associated with AI are particularly relevant for cyber liability insurance, with institutions like Lloyd's of London needing to adapt their policies to address these new challenges.
For the London Insurance Market, the emerging risks associated with AI are particularly relevant for cyber liability insurance, with institutions like Lloyd's of London needing to adapt their policies to address these new challenges.