AI Vaccine: It's Out of The Freezer

Security can come in many stripes. AI insurance may sound novel, unusual, and even too early to some people. But with all the GenAI mishaps, hallucinations, bias-errors and jaywalking seen so far- it may be the right time for both insurance players and users to take a shot here. And not the Tequila one.

- Pratima H

You don't put on a helmet in a normal car. But in a Formula 1 beast, you do it without whining. You don't drape a Parka jacket on your morning jog but on a snow-clad Arctic mountain, you obediently curl into it. You don't bedeck your shoes with spikes when you step out shopping, but on a football field, you noiselessly strap them on. You don't sign the dotted line when you fly on a domestic plane, but when you sky-dive, you shut your eyes and give that consent.

When things grow to the extreme, they get exciting but also unpredictable and dangerous. So why should we not be thinking of insurance as we trek into the ever-thinning, ever-growing air of GenAI? It's already an extreme sport for most players and users going by all the highs and lows that have been transpiring in the last few months. Good idea? Early? And how exactly would this insurance work? And for whom?

GENAI AND INSURANCE- SAY THAT AGAIN?

Let's take the instance of a US lawyer who encountered the consequences that the risk of hallucinations can entail in 2023. The lawyer used an AI chatbot to aid him in researching relevant case law (As illustrated in a Munich Re Whitepaper on this topic). The cases cited by the AI chatbot-as well as the subsequent reassurance by the AI that the cases turned out to be a hallucination of the AI. The result- This "bogus judicial decision with bogus quotes and bogus internal citations" received a "stern admonishment" by the federal judge ruling the case, tarnishing his law firm's reputation.