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Artificial Intelligence (AI) has gone from something businesses were curious about, to a tool many now use in their everyday work. 

As the technology continues to advance, and more people start to adopt it, AI is finding its way into everything from research and report writing to client communications. 

There’s no doubt that using AI can save valuable time, but it also raises questions that many businesses haven’t had to consider before these latest developments... 

For example, if you use AI when you’re producing work for clients - whether that’s drafting reports, researching topics or preparing a presentation, what happens if AI gets it wrong?

And it is possible… In fact, have you noticed that when you ask AI a question, there’s often a caveat at the end of the results with some disclaimer about the fact that AI can make mistakes, thereby putting the onus back on the human user to check and double-check all the info.  

But what if you don’t check?  What if you take that information as gospel and present it to a customer as part of your work, but then it turns out the information it produced was wrong and the client’s business suffers as a result?  Would your Professional Indemnity (PI) Insurance still protect you?

This is a very interesting question…as whilst using AI does not automatically invalidate your PI insurance, it will depend on how you use AI, the terms of your policy and what is covered, and the circumstances of any claim.

For example, imagine an AI tool produces a convincing but incorrect figure for a client report. You include it without checking, and the client makes a costly decision based on your advice. They may hold your business responsible for the mistake, even though the figure came from AI. Whether your insurer would cover the claim depends on your policy terms and the detailed facts of the case…

And the problems aren’t always about the data produced by AI.  Sometimes the problem can be around data being input into AI.  For example, entering confidential client information into an AI tool could create a data protection or confidentiality issue. For more information on this, check out The Information Commissioner’s Office website, which is a fantastic source of advice for organisations using personal data in AI systems. 

To make sure you stay as safe as possible, be sure to tell your insurance broker if AI has become a significant part of how you deliver services in your business. 

When arranging business insurance, you have a duty to give the insurer a fair picture of any risks being taken. That way, your broker can help you identify what information the insurer needs and check whether your cover still suits the work you do.

To be honest though, a sensible starting point is to check and double-check AI-generated work before it reaches a client. It’s also good practice to set clear rules for handling confidential information, and keep a record of your review process.

Whilst there’s no doubt that AI can be a useful assistant, you should always remember that, for professional work, your business remains responsible for what it delivers. 

If you’re unsure how your Professional Indemnity policy might respond to any AI-related mistakes, please get in touch.  We’ll be happy to have a chat with you, to find out more about your business and how you’re using AI to deliver your services. 

You can also reach out to us for any of your business or personal insurance needs, or any questions about any of your existing policies.  We can help with a wide range of different insurances, from Micro Business and Business Interruption Insurance, to Annual Travel Insurance and GAP Insurance. 

And if you’re local to Tamworth, feel free to pop into our office in The White House on Church Street in the town centre.  Just check Google for our opening hours. We’d love to see you!