Willis warns on rapid uptake of AI
AI is rapidly reshaping how risk is understood, priced and managed, but the rate of adoption is outpacing existing AI governance frameworks, according to new research from the latest Risk and Resilience review by Willis that highlights how AI is being embedded across underwriting, claims, cyber defence, and operational decision-making.
Willis said that this growing integration is introducing new challenges around accountability, liability and insurability.
According to Willis the challenge now facing businesses is the responsible adoption of AI. Many organisations are already relying on systems they cannot fully interrogate, placing trust in outputs that are not always challenged. The result is a subtle yet significant shift in how risk is created, distributed and, in some cases, amplified.
Key takeaways include:
• AI is already embedded across underwriting, claims, and cyber defence: Exposure is already building across multiple lines, while questions of liability, accountability and insurability are still being worked through. More than 700 million people now use leading AI systems every week, embedded into operational infrastructure, shaping customer interactions and executive decision-making.
• Market shift towards clearer AI risk coverage: The insurance market is diverging, with some insurers and brokers still relying on traditional policy wording and “silent AI” assumptions, while others are introducing affirmative AI cover and strengthening underwriting requirements tied to governance and control frameworks.
• AI risk is becoming a governance and liability issue: Some of the most immediate impacts of AI are being seen in core insurance processes. It is no longer a primarily technology issue; it has become a governance, liability and insurability challenge spanning legal doctrine, regulation, and operational oversight.
· The role of risk leaders: Cyber risk is becoming more adaptive and harder to benchmark: global cybercrime costs have risen from roughly $3 trillion in 2015 to a projected $10.5 trillion annually by 2025, increasing pressure on organisations to adopt AI-enhanced threat detection and continuous cyber monitoring.
Spike Lipkin, chief AI officer, Willis, said: “AI is already reshaping the risk landscape in real time, but many organisations are moving forward without fully understanding the systems they rely on. That creates a dangerous gap between innovation and oversight. Business leaders need to recognise that this is no longer just a technology issue, but a governance, liability and trust challenge. Those who stay passive risk falling behind both in resilience and competitiveness. Leaders must be vigilant, challenge outputs, and invest in robust governance frameworks that bring transparency and accountability to how AI is deployed.”
To get a copy of the report contact Willis.
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