Insurance firms are warning that AI-washing could trigger a slew of cases against directors, and are adjusting their directors’ and officers’ liability premiums accordingly. With regulators cracking down on AI-washing – overstating the extent to which an organization is an AI business, or the value of its AI use to win investment or market share – compliance could be a crucial line of defense and save companies on their insurance costs.
A pattern of AI-washing prosecutions and enforcement actions has emerged in the last 18 months with U.S. regulators, a pattern that has continued even since President Donald Trump took office in January.
