AI: Are You Covered If Digital Tools Go Rogue?

We're hearing more about clever AI tools, sometimes called 'AI agents', that can complete tasks all on their own — from managing your diary to drafting important emails. For businesses, these tools promise to save heaps of time and money, automating repetitive jobs and helping things run smoother.

But as these digital helpers become more common, a big question is popping up: What happens if one of these AI agents makes a mistake, or even acts in a way that causes harm? For example, if an AI agent managing your customer communications accidentally sends out incorrect pricing or, worse, something inappropriate, who is responsible? And will your insurance cover the fallout?

Currently, many insurance policies, especially cyber insurance, are designed with human errors or traditional hacking in mind. They've spent years defining what counts as a 'hack' and when they'll pay out. But the idea of an AI agent, which isn't a human and isn't quite a hacker, causing damage is a new challenge. It’s making insurance companies around the world, including potentially here in Australia, rethink their rules.

This doesn't mean you should panic or stop using AI. It just means we're in a new frontier. As more businesses adopt AI, insurers will adapt. They're looking at how to include 'AI-related risks' into their policies, so that if one of your clever digital tools goes a bit off-script, you might still be protected. It’s a space worth watching if your business relies on digital tech.

For Aussie small business owners, it’s a good prompt to check in with your insurance broker. Ask them what your current policies cover when it comes to new technologies and AI. Understanding this now can help you prepare for the future and ensure your business stays protected as AI becomes an even bigger part of our working lives.