Everywhen survey finds 76% identify AI mistakes or cyber threats as the biggest PI risks facing businesses today
Artificial intelligence mistakes have emerged as the biggest Professional Indemnity risk facing businesses, as new research suggests the rapid adoption of technology is fundamentally changing the professional liability landscape.
A survey by insurance experts Everywhen asked businesses and professionals to identify the biggest PI risk facing organisations today, with 41% selecting AI mistakes, ahead of cyber risks at 35%.
Compliance failures were identified by 23% of respondents, while just 1% selected vendor failures.
The findings point towards a significant shift in the risks surrounding professional services. While PI insurance has traditionally been associated with human errors such as incorrect advice, missed deadlines, negligence and contractual disputes, businesses must increasingly consider what happens when technology plays a role in the decisions, advice, and services they provide.
The rise of generative AI has allowed businesses to automate and accelerate everything from research and analysis to customer communications, document preparation, and professional advice.
But greater use also raises an increasingly important question: who is responsible when AI gets it wrong?
An AI-generated document containing inaccurate information, an automated recommendation based on flawed data or unchecked AI output incorporated into professional advice can potentially create financial and reputational consequences for both businesses and their clients.
The survey suggests this is no longer regarded as a future or theoretical concern. AI mistakes are already perceived as a greater PI threat than compliance failures and other established areas of professional risk.
Neil D’Mello, Client Director at Everywhen, said:
“Professional Indemnity, and traditional risks have long been centred around human judgement, the advice somebody gives, the deadline somebody misses or the error somebody makes. Technology is beginning to complicate that picture.
“AI can be an incredibly useful tool for businesses, but using technology doesn’t necessarily remove responsibility for the outcome. If AI-generated information forms part of the advice