You’ve put AI everywhere! But can you insure against AI going wrong?

Thu, 19 Feb 2026 04:30:54 +1100

Andrew Pam <xanni [at] glasswings.com.au>

Andrew Pam
<https://www.thestack.technology/youve-put-ai-everywhere-but-can-you-insure-against-ai-going-wrong/>

"Businesses want AI. They’re convinced AI is the future — even when the present
isn’t quite there yet.

But AI carries risks. A Geneva Association survey in late 2025 shows more than
90% of businesses using AI want insurance against risks from bad AI output. Can
insurers provide it?

The trouble with offering insurance against bad output from AI is that
generative AI is a machine for getting things wrong. “Hallucinations” are part
of how gen-AI works and cannot be completely mitigated. You can only safely
use generative AI, and indeed machine learning in general, when errors are
trivial and not load-bearing."

Cheers,
       *** Xanni ***
--
mailto:xanni@xanadu.net               Andrew Pam
http://xanadu.com.au/                 Chief Scientist, Xanadu
https://glasswings.com.au/            Partner, Glass Wings
https://sericyb.com.au/               Manager, Serious Cybernetics

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