Beyond the dystopian vision of Skynet and robots controlling the earth, the reality is that Artificial Intelligence (AI) is likely to become a game-changer in several industries. Its applications will touch every business domain, ranging from healthcare, finance, hospitality and e-commerce. Though AI seems to be a promising technology, it poses some unique risks to businesses. These dangers demand determination and mitigation procedures to protect organisations’ technology, assets, and employees’ values.
There are going to be many ethical questions surrounding AI; jobs could be lost, decisions could be made by an algorithm which overlook the ‘human element’, but for business at the moment the greatest emerging risk is cyber security.
Hackers can use AI tools to exploit business enterprises’ vulnerabilities in a security system and gain unrestricted access to sensitive information. As AI technology progresses, hackers have also leveraged innovative and newer techniques to hack into businesses’ networks. It is likely that the hackers will also be able to control process machinery and wider networks.
AI’s use in industries may transform business operations and lead to unprecedented growth and efficiency. However, AI risk management requires vigilant foresight and action on the organisation’s part. With the right approach, businesses can manage the risks that AI poses and achieve safer and responsible AI applications.
This isn’t just about AI but about the use and misuse of data. Data is the most valuable commodity in the world and this will drive AI performance; but businesses have a duty to safeguard and protect the data they hold.
Of course, the front line of all risk management strategies are good policies and procedures, vigilant staff and defensive software but does your business have Cyber Risks Insurance?
Cyber insurance is designed to protect individuals and businesses from financial losses arising from cyber threats such as data breaches, hacking attempts, and cyber extortion.
Here are some reasons why you might consider buying cyber insurance:
Protection against financial losses – Cyber insurance can provide coverage against losses resulting from data breaches, ransomware, cyber extortion, and business interruption due to cyber events.
Mitigation of reputational damage – In the event of a cyber incident, customers may lose trust and confidence in a business. Cyber insurance can help mitigate the damage to a business’s reputation by providing coverage for things like public relations and advertising expenses.
Complying with legal and regulatory requirements – Businesses are subject to various laws and regulations that govern data privacy. Cyber insurance can help cover the costs associated with legal fees and fines arising from non-compliance with these requirements.
Access to expert resources – Cyber insurance policies often come with access to expert resources, such as legal counsel and IT security experts, to help businesses prevent and respond to cyber incidents.
If your business doesn’t have Cyber Insurance, it should!
By Andy Morley – Group Managing Director