This panel will explore how insurers are increasingly deploying AI tools—such as machine learning for underwriting, natural language processing for claims, computer vision for damage assessment, and predictive analytics—to make critical decisions, and the legal, ethical, and practical issues this creates. Panelists will address the “black box” challenge of explainability, transparency, and algorithmic bias; examine bad faith, discrimination, and negligence claims tied to AI-driven claims handling; and discuss real-world examples of policyholder harm.

The conversation will cover discovery strategies for uncovering insurer AI use, policyholder risks from their own AI tools, and best practices for maximizing coverage of AI-related exposures under traditional insurance policies. Panelists will also address establishing the right contractual relationships between AI providers and insurers, using exclusions and limits as all parties negotiate the ever-changing AI use landscape, and ensuring the foundation of AI-driven decisions is justifiable through clear rights to data and the use of appropriate, reliable data.

Finally, the panel will consider how insurers are responding to AI risks with exclusions, sublimits, and new products, and will provide practical guidance for policyholders, insurers, and counsel navigating this evolving landscape.