Insurance industry sees lack of AI transparency driving value of warranties

Insurance industry specialists generally have yet to see demand for AI-specific policies with a few exceptions, including for an insurance product that guarantees the ongoing technical performance of models, given the “black box” nature of the technology.

The specialists’ insights come as policymakers continue to grapple with transparency in AI’s development as a key point of contention.

One exception in the otherwise slow market for standalone AI insurance “is around what's called a performance guarantee. It's really an AI warranty...