Gartner, a research and advisory firm specializing in business and technology insights, predicts that by the end of 2026, there will be more than 2,000 legal claims globally related to so-called “artificial intelligence death” events.
This forecast reflects growing awareness of the legal and financial consequences of the continued deployment of artificial intelligence across industries.
Gartner says general counsel should start integrating specialized AI insurance products into their broader risk management frameworks.
The firm maintains that as organizations expand their use of artificial intelligence, legal leaders need to understand the impact of these policies in detail, including how they are priced, what protections they offer and their limitations.
This understanding is considered critical to managing the wider financial, operational and legal risks that AI technologies may introduce.
Gartner further suggests that by 2030, insurers operating in the property and casualty market may require organizations to demonstrate strong AI risk control capabilities before granting explicit AI liability coverage. The company expects this shift to lead to a significant increase in investment in AI governance and security measures, potentially driving a 60% increase in related controls.
Gartner believes this development will also impact how responsibilities are distributed within organizations, with those that demonstrate mature governance practices better able to secure favorable insurance terms and reassure stakeholders.
The company explains that AI-specific insurance is designed to address areas not typically covered by standard commercial policies. These include financial losses from incorrect or misleading output produced by AI systems, as well as legal risks associated with unintentional bias or discrimination in automated decision-making.
Gartner also notes that such policies may extend to intellectual property disputes, particularly where AI models are accused of using or copying protected material without permission.
Additionally, some insurance companies are starting to offer performance-based guarantees, providing compensation if AI systems fail to meet agreed-upon benchmarks. Coverage may also extend to cases where an AI-related failure causes physical harm, such as through flawed automated suggestions, compromised systems or operational failures.
Gartner recommends that general counsel should be responsible for reviewing existing insurance arrangements to identify any gaps in AI-related coverage. This includes assessing whether current providers offer products that clearly address AI risks and determining how these products complement existing policies.
The company also recommends leading a cross-functional assessment of AI risks, involving compliance, legal, marketing, cybersecurity and IT teams.
Such an approach should consider the potential impact of an AI-related incident, including regulatory penalties, litigation and reputational damage, and can also support discussions with insurers when seeking appropriate coverage.
“As AI incidents proliferate and insurers increasingly exclude AI from traditional policies, companies face growing risks from the legal, financial and regulatory impacts of algorithmic failures,” commented Alissa Lugo, senior analyst in Gartner’s legal and compliance practice. “GCs should evaluate a new wave of ‘affirmative AI insurance’ products that provide targeted coverage for risks such as hallucinations, bias, intellectual property infringement and security failures.”
“Currently, AI risks are not adequately addressed through a combination of internal risk management practices and traditional business owners’ insurance policies, which can result in significant financial losses or brand damage,” Lugo continued. “GCs need to carefully consider how their organizations will be protected in the event of AI-related legal claims.”
“Ultimately, the rise of affirmative action AI insurance signals a simple reality: Companies that fail to prepare for AI-driven liability may soon find themselves at risk,” Lugo added.
