Hinshaw partner Francesco Palanda recently authored a byline in the American Bar Association Insurance Coverage Litigation Committee newsletter titled “Six Tips for Evaluating and Mitigating AI-Related Business Interruption Risk.”
The article offers practical guidance for attorneys advising clients on Artificial Intelligence (AI)-related business interruption risks, including how to evaluate exposure, identify coverage gaps, and mitigate potential losses.
As businesses increasingly rely on AI to generate, analyze, and monetize information, the risk of business interruption is evolving. Francesco explains how losses may stem not only from physical damage or system downtime, but also AI-specific issues such as inaccurate outputs, system unpredictability, or “hallucinations”—risks that may fall outside traditional insurance coverage.
Six Tips to Evaluate and Mitigate AI-Related Business Interruption Risk
