A new survey shows that many US business owners are ramping up their insurance coverage as they navigate the challenges of an AI boom and the upcoming presidential elections.
Business Owners Seek to Increase Insurance Coverage Amid AI, Election Fears
According to a survey by insurance brokerage Gallagher, 80% of business owners are concerned their current insurance policies may not cover specific losses associated with these risks, Reuters reported.
As companies rush to integrate AI, particularly generative AI, into their operations, the technology is rapidly transforming various sectors, from tech to finance. Despite its potential, adopting AI brings concerns about data privacy, regulatory compliance, and job redundancies.
Simultaneously, the looming presidential election, featuring a contest between former President Donald Trump and current President Joe Biden, added another layer of uncertainty. According to the survey's findings, businesses could face cyber interference and shifts in public policy that might impact corporate operations.
AI Investments
The survey, which included 1,000 respondents, revealed that 81% plan to maintain or increase their AI investments in 2024. However, the need for enhanced insurance coverage is underscored by fears of cyber attacks and extreme weather events.
Gallagher emphasized the importance of businesses understanding regulatory risks, including potential liabilities related to copyright infringement, data bias, and intellectual property, especially in the ever-evolving age of AI.
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