Publications
Publications
- April 29, 2020
- Harvard Business Review Digital Articles
The Case for AI Insurance
By: Ram Shankar Siva Kumar and Frank Nagle
Abstract
When organizations place machine learning systems at the center of their businesses, they introduce the risk of failures that could lead to a data breach, brand damage, property damage, business interruption, and in some cases, bodily harm. Even when companies are empowered to address AI failure modes, it is important to recognize that it is harder to be the defender than the attacker since the former needs to guard against all possible scenarios, while the latter only needs to find a single weakness to exploit. Enter AI insurance. The authors believe that businesses can expect stringent requirements when AI insurance is introduced to limit the insurance provider’s liability with rates cooling off as the AI insurance market matures. They offer a guide on preparing for the introduction of these insurance plans.
Keywords
Artificial Intelligence; Machine Learning; Internet and the Web; Safety; Insurance; AI and Machine Learning; Cybersecurity
Citation
Kumar, Ram Shankar Siva, and Frank Nagle. "The Case for AI Insurance." Harvard Business Review Digital Articles (April 29, 2020).