AI lawsuits expose gaps in conventional insurance, says report

DETAILED EXPLANATION

A report from the Artificial Intelligence Underwriting Company finds that more than 90% of insurers' AI exposure sits in silent cover buried inside conventional policies, leaving the risks largely unpriced and often unnoticed. As AI moves from chatbots that generate bogus answers to autonomous agents that take real actions, businesses face a widening range of claims, from professional negligence to wrongful death.

The report estimates a major AI catastrophe could cause around $100 billion in direct damages, with economic fallout reaching into the trillions if insurers pull coverage and adoption cools.