The Risks of Using AI with Standard Professional Indemnity Insurance.

The rise of artificial intelligence (AI) is transforming industries across Ireland, from architecture and construction to law, healthcare, and accountancy. AI design software, construction estimation tools, legal data analysis systems, and healthcare diagnostics are just a few examples of how professionals are leveraging this technology to enhance efficiency and decision-making. However, many professionals may not realise the risks involved if their Professional Indemnity (PI) insurance policy doesn’t account for the unique challenges AI introduces. Do you know? This is why it is a really good time to talk with out Pl PI team. 

The Risks of Relying on AI Without Proper Cover

While AI can streamline processes and improve outcomes, it is not without its flaws. Standard PI policies are often designed with traditional risks in mind and may leave professionals vulnerable when AI is involved. Below are some of the most pressing risks:

1. Errors in AI Output

AI systems are continiouly evolving,  and their progress is amazing. But the speed at which they are developing also brings some consequenses. AI systsem can produce flawed or misleading results due to biased data, faulty algorithms, or limited training. For example, an architect using AI design software could unknowingly rely on inaccurate measurements, leading to costly project delays or structural issues.

2. Lack of Human Oversight

AI tools often require human validation to ensure their recommendations are accurate. Without sufficient oversight, errors can go unnoticed. Imagine a healthcare provider relying solely on AI diagnostics, which later turn out to be incorrect, resulting in potential claims of negligence.

3. Unforeseen Risks

AI technology can behave unpredictably or produce unintended consequences. Construction firms, for instance, using AI estimation tools might face claims if a project budget calculated by the software is significantly underestimated, leading to financial losses.

4. Regulatory Non-Compliance

AI systems might inadvertently breach data protection laws, such as GDPR, or fail to meet industry-specific regulations. Law firms in Ireland, for example, could face penalties or client claims if AI-based legal research tools mismanage sensitive case data.

5. Evolving Technology

Standard PI policies may not fully address risks from rapidly evolving AI technologies. For instance, accountants using AI-driven financial software might encounter challenges if the technology fails to adapt to updated tax regulations, resulting in incorrect filings.

6. Third-Party Liability

AI tools sourced from external vendors can introduce liability risks. A business relying on third-party AI software might face claims if the tool’s failure negatively impacts a client’s project. Insurers may then argue the liability lies with the software provider, not the policyholder.

7. Failure to Disclose AI Use

Non-disclosure of AI usage to your insurer can lead to reduced payouts or voided policies. Professionals must explicitly inform their brokers or insurers about how AI is integrated into their work processes.

Auto-Renewing Your PI Policy: A Hidden Risk

Many professionals unknowingly put themselves at risk by auto-renewing their PI policies without considering whether their insurer has experience with AI-related risks. A policy that doesn’t account for the unique challenges of AI might leave significant gaps in coverage. This can be particularly concerning in Ireland, where AI adoption is increasing across various sectors.

Dolmen Insurance: Leaders in AI-Centric Professional Indemnity

Dolmen Insurance Brokers is one of the first brokers in Europe to develop a dedicated AI-focused PI team. Over the past number years, our team has worked tirelessly to evolve PI insurance products that protect professionals using AI in their businesses. We understand the Irish market and are well-positioned to guide businesses in the UK as well.

Our expertise ensures that your PI cover addresses AI-related risks, from human oversight issues to regulatory compliance challenges. By partnering with us, you gain access to tailored advice, cutting-edge policies, and a team that understands both the opportunities and the complexities AI presents.

Protect Your Business Today

The evolution of AI is transforming how professionals work, but it also demands new approaches to risk management. If you’re using AI and want to ensure your PI insurance offers complete protection, talk to Paul Clinton at Dolmen Insurance Brokers today.

By working with an experienced team like ours, you’ll not only protect your business but also gain peace of mind knowing you’re prepared for the future. Don’t wait—be proactive and secure the right cover today.

Contact us todat: https://www.dolmen-insurance.ie/business-insurance