While corporates and carriers are betting on AI to improve performance, some major insurers are starting to pull back from broad AI liability on the coverage side. In late 2025, several large underwriters, including AIG and W. R. Berkley, began introducing exclusions for AI-related risks in corporate policies, citing the potential for unpredictable, multibillion-dollar losses from systemic failures, deepfake-enabled fraud and high-profile AI misfires.

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