Artificial intelligence and the U.S. election have emerged as significant risks to businesses this year with an overwhelming 80 percent of owners worried their insurance will not cover a specific loss, reveals a recent survey by insurance brokerage Gallagher.
Companies are racing to build AI into their products. Generative AI, which aims to create human-like interactions by processing vast amounts of data, is expected to be integrated into workplaces across industries from technology to financial services.
Meanwhile, the U.S. is also headed for a presidential election that pits the former president, Republican Donald Trump, against President Joe Biden.
Several public policies and potential laws affecting corporations hinge on the results. Businesses could also be subject to cyber interference during the election.
From the 1,000 respondents in the survey, 81 percent said they are looking to maintain or even increase their investments in AI in 2024.
Despite the benefits of the technology, business owners are concerned about risks from exposure to sensitive information, regulation and redundancies in workplaces, it found.
Insurance demand has remained strong against a slowing economy as customers continue to build up coverage against extreme weather events and cyber attacks.
According to Gallagher’s findings, 91 percent of those surveyed worry about natural disasters and catastrophes affecting their businesses, while another 69 percent are concerned about potential cyber attacks.
“Businesses need to be familiar with regulatory risks and potential liability related to copyright infringement, data bias and intellectual property,” said Chairman and CEO J. Patrick Gallagher told Reuters. “Organizations incorporating generative AI into their operations should be conducting risk assessments with compliance, privacy and cybersecurity in mind,” he added.