The research, based on senior decision-makers across multiple regions and sectors, found technology risk has climbed rapidly as AI becomes embedded in day-to-day operations. The concern is not simply whether an AI tool produces a poor output. The more difficult question is whether the business had proper controls around how the tool was selected, monitored, checked and used in client-facing work.
This is an important extension of recent debate about AI-related coverage gaps. Earlier commentary focused heavily on how an AI incident might sit between cyber, technology errors and omissions, product liability and professional indemnity policies. The latest risk findings broaden that conversation: AI exposure is becoming a management discipline in its own right, not just a policy classification problem.
For professionals, the practical risk often starts with reliance. A consultant may use AI to summarise client data, draft recommendations, prepare design options or review documentation. If that output is inaccurate, biased, incomplete or based on unsuitable inputs, a client may still argue that the professional failed to exercise reasonable care. In that setting, the existence of an AI tool will not necessarily remove responsibility from the human adviser or firm.
That is why businesses should treat AI governance as part of their professional risk framework. Useful steps include keeping records of AI-assisted work, checking outputs before client delivery, limiting the use of confidential data, training staff on approved tools, and making sure contracts do not promise outcomes that technology cannot reliably support.
Insurance should be reviewed alongside those controls. Some policies may contain exclusions, cyber limitations, technology service conditions or notification obligations that matter when AI contributes to a dispute. Businesses using AI in client advice, analysis, design or decision support should consider reviewing professional indemnity insurance options before a claim exposes assumptions in their cover.
The key lesson is simple: AI can improve productivity, but it also changes the evidence trail. If a client questions the quality of professional work, insurers and lawyers may look closely at governance, documentation and oversight. Speaking with professional indemnity insurance brokers can help businesses test whether their policy wording and internal controls are keeping pace with how they actually work.
Please Note: If this information affects you or is relevant to your circumstances, seek advice from a licensed professional.
