AI Within Your Business – Opportunity, Responsibility, and Risk
I’ve been reading with keen interest about how artificial intelligence is being introduced into businesses, and there’s no doubt it’s delivering some impressive results. We’re seeing real improvements in quality, alongside significant efficiency gains — and for many organisations, that’s hard to ignore.
AI is now commonly used across customer service, marketing, content creation, fraud detection, HR screening, and operational automation. In many cases, it’s helping businesses move faster, respond more intelligently, and free up people to focus on higher-value work. Used well, AI can be a powerful tool.
But alongside this rapid adoption, there’s a quieter – and equally important – conversation taking place around risk.
Impact on your insurance
Insurers, in particular, are grappling with how to assess and cover AI-related exposure. As a result, some are becoming more cautious, and in certain cases are retreating from covering losses linked to AI use altogether. If that trend continues, businesses may need to rethink how they assess and manage the risks associated with these tools.
Where is the risk?
Take chatbots as an example. Many are now embedded directly into company websites or products, providing information or guidance generated by AI. If a chatbot provides incorrect advice, or a design tool introduces an error that leads to a commercial or legal issue, where does the liability sit? Without appropriate cover, businesses could find themselves exposed in ways they hadn’t anticipated.
Insurance profiles
Some analysts believe a new class of specialist AI insurance products will emerge, much like cyber insurance did over the past decade. Others argue that meaningful coverage won’t be possible until insurers gain far more visibility into how AI models work – how they’re trained, how decisions are made, and how systems behave in unexpected situations.
Until those risks can be measured with greater confidence, insurance cover is likely to remain uncertain and, in some cases, more restrictive. In many ways, the next phase of AI adoption won’t just depend on the technology itself, but on how well organisations understand and manage the liabilities that come with it.
There are already signs of tightening language in insurance policies. Some insurers are reported to be seeking exclusions for claims arising from “any actual or alleged use” of AI in a product or service. Others go further, aiming to exclude losses connected to decisions made by AI or errors introduced by systems incorporating generative models.
The UK View of Accountability
Here in the UK, the approach has been more flexible and sector-based so far, but regulators are paying close attention. The Financial Conduct Authority has already made it clear that firms remain responsible for the outcomes of automated decision-making systems – whether or not those systems involve AI. In other words, accountability doesn’t disappear just because a machine is involved.
Where does this leave us?
My view is that, as with any emerging technology, the key is understanding. Businesses need clarity on how AI is being used, where it delivers value, and where it could introduce risk. AI use will continue to expand and evolve, which means governance, oversight, and clear decision-making processes will become essential best practice.
We’ve been here before – whether with cloud computing, flexible working, or cybersecurity. Strong leadership means continually reassessing how new technologies fit into the wider business landscape and putting sensible controls in place as things develop.
AI has enormous potential, but confidence comes from understanding – not just adoption.
If you’d like to increase your confidence in how AI fits into your business strategy, call 01473 350444 and ask for Colin, or email enquiries@heronit.co.uk.
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