1. Major insurance companies are seeking exemptions from corporate policies regarding AI-related liabilities due to concerns about the unpredictable and potentially risky nature of AI models.
2. Recent incidents involving AI, such as Google's AI Overview falsely accusing a solar company and Air Canada's chatbot offering incorrect discounts, have raised red flags within the industry.
3. Insurers fear systemic risks posed by widespread AI failures, which could result in thousands of simultaneous claims if a widely used AI model malfunctions, as opposed to one large payout from a single incident.