Madalyn Moore and Alex D. Pappas are introduced as the speakers, both specializing in insurance coverage and litigation. The webinar will cover AI risks, definitions, legacy insurance responses, AI-specific policies, underwriting, contractual risk transfer, and future AI risks. Madalyn and Alex express excitement about discussing AI and insurance, emphasizing the importance of understanding AI risks and definitions.

The speakers discuss the importance of understanding AI usage and its associated risks for businesses. AI usage is prevalent, with many companies incorporating it into their operations, but it comes with risks such as litigation. AI-related lawsuits are increasing, highlighting the need for businesses to maximize their insurance coverage for AI risks. Common AI risks include AI washing, data breaches, discriminatory hiring practices, IP infringement, and incorrect outcomes. Organizations must audit their AI risk exposure and ensure their insurance coverage addresses these risks. Understanding industry-specific risks and regulatory frameworks is crucial for tailoring insurance and contractual provisions. Defining AI is essential for insurance policies and contracts to ensure coverage and risk transfer.

The speakers explain that traditional insurance policies like CGL, D&O, and cyber insurance should cover AI risks. AI-related incidents, such as bodily injury or misrepresentation, should be covered by existing insurance policies. AI-specific exclusions are emerging, making it crucial for policyholders to review and negotiate their insurance policies. AI exclusions vary, with some insurers excluding all AI-related risks, affecting coverage for organizations using AI. AI-specific insurance products are also emerging, with insurers offering affirmative coverages and endorsements to existing policies. Organizations should conduct regular coverage reviews to ensure their insurance programs address AI risks.

Insurers are increasingly interested in how organizations use AI during the underwriting process. Precise definitions of AI are crucial for negotiating insurance policies and ensuring coverage for AI risks. Organizations should verify AI usage by vendors and shift risks through contractual provisions. Contractual indemnity and insurance provisions are vital for managing AI risks, especially with untested AI-specific insurance products.