By Manya Saini
(Reuters) – Artificial intelligence and U.S. elections have emerged as significant risks to businesses this year, with an overwhelming 80% of owners worried their insurance will not cover a specific loss, a survey by insurance brokerage Gallagher showed on Wednesday .
WHY IT’S IMPORTANT
Companies are racing to build AI into their products. Generative AI, which aims to create human-like interactions by processing large amounts of data, is expected to be integrated into workplaces across industries from technology to financial services.
Meanwhile, the US is also heading into a presidential election, pitting former president, Republican Donald Trump, against President Joe Biden.
Various government policies and potential laws affecting businesses depend on the results. Companies can also face cyber interference during elections.
CONTEXT
Of the 1,000 respondents in the survey, 81% said they want to maintain or even increase their investments in AI by 2024.
Despite the benefits of the technology, business owners are concerned about the risks of exposure to sensitive information, regulations and layoffs in the workplace, it emerged.
Demand for insurance has remained strong despite the slowing economy, as customers continue to build coverage against extreme weather events and cyber attacks.
According to Gallagher’s findings, 91% of respondents are concerned about natural disasters and catastrophes affecting their businesses, while another 69% are concerned about potential cyber attacks.
KEY QUOTES
“Companies need to be aware of the regulatory risks and potential liabilities associated with copyright infringement, data bias and intellectual property,” Chairman and CEO J. Patrick Gallagher told Reuters.
“Organizations integrating generative AI into their operations must conduct risk assessments with compliance, privacy and cybersecurity in mind,” he added.
GRAPHIC
