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What happens when the software that everyone\u2019s racing to adopt becomes too risky for anyone to insure? According to reporting from the Financial Times<\/a>, we\u2019re about to find out.<\/p>\n Major insurers including AIG, Great American, and WR Berkley are asking U.S. regulators for permission to exclude AI-related liabilities from corporate policies. One underwriter describes the AI models\u2019 outputs to the FT as \u201ctoo much of a black box.\u201d<\/p>\n The industry has good reason to be spooked, the story reminds us. Google\u2019s AI Overview falsely accused a solar company of legal troubles, triggering a $110 million<\/a> lawsuit back in March. Air Canada last year got stuck honoring a discount its chatbot invented<\/a>. And fraudsters last year used a digitally cloned version of a senior executive to steal $25 million<\/a> from the London-based design engineering firm Arup during a video call that seemed entirely real.<\/p>\n What really terrifies insurers isn\u2019t one massive payout; it\u2019s the systemic risk of thousands of simultaneous claims when a widely used AI model steps in it. As one Aon executive put it, insurers can handle a $400 million loss to one company. What they can\u2019t handle is an agentic AI mishap that triggers 10,000 losses at once.<\/p>\n<\/div>\n