The growing integration of artificial intelligence (AI) is introducing new challenges around accountability, liability and insurability, with the rate of adoption outpacing existing AI governance frameworks, according to Willis’ latest Risk & Resilience Review.
Willis noted that AI is embedded across workflows, from reading claims files and shaping underwriting judgement to filtering cyber threats. It is rapidly reshaping how risk is understood, priced and managed.
More than 700 million people now use leading AI systems every week, with the technology increasingly embedded into operational infrastructure, shaping customer interactions and executive decision-making.
However, the challenge businesses are now facing 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.
Willis highlighted the implications for the insurance industry: “For insurers, this is uncomfortable territory. The industry is used to dealing with uncertainty, but typically with the benefit of history, data and precedent. Here, those anchors are weaker. Exposure is already building across multiple lines, while questions of liability, accountability, and insurability are still being worked through.”
Willis stressed that some of the most immediate impacts of AI are emerging within core insurance processes. It is no longer primarily a technology issue; it has become a governance, liability and insurability challenge spanning legal doctrine, regulation and operational oversight.
The firm also noted that the insurance market is beginning to diverge, with some insurers and brokers continuing to rely 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.
Despite these challenges, AI is already delivering real value, improving speed, consistency and insight across a range of insurance functions. Willis emphasised that unlocking this value depends on strong governance, clear points of human judgement and a measured approach to building trust in AI-generated outputs.
Spike Lipkin, Chief AI Officer at 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.”
