Gartner, a research and advisory company specialising in business and technology insights, has projected that more than 2,000 legal claims linked to so-called “death by AI” incidents will be brought worldwide by the end of 2026.
The prediction reflects a growing awareness of the legal and financial consequences associated with the increasing deployment of artificial intelligence across industries.
According to Gartner, General Counsel should begin incorporating dedicated AI insurance products into their wider risk management frameworks.
The firm maintains that as organisations scale their use of AI, legal leaders need to understand the implications of these policies in detail, including how they are priced, what protections they offer, and where their limitations lie.
This understanding is seen as essential for managing the broader financial, operational and legal exposure that AI technologies may introduce.
Gartner further suggests that by 2030, insurers operating in the property and casualty market are likely to require organisations to demonstrate strong AI risk controls before granting explicit AI liability coverage. The company anticipates that this shift will lead to a significant increase in investment in AI governance and security measures, potentially driving a 60 per cent rise in related controls.
In Gartner’s view, this development will also influence how accountability is assigned within organisations, with those demonstrating mature governance practices better positioned to secure favourable insurance terms and reassure stakeholders.
The firm explains that AI-specific insurance is designed to address areas not typically covered by standard business policies. These include financial losses arising from incorrect or misleading outputs generated by AI systems, as well as legal exposure linked to unintentional bias or discrimination in automated decision-making.
Gartner also notes that such policies may extend to intellectual property disputes, particularly where AI models are alleged to have used or reproduced protected material without permission.
In addition, some insurers are beginning to offer performance-based assurances, providing compensation where AI systems fail to meet agreed benchmarks. Coverage may also extend to instances where AI-related failures contribute to tangible damage, such as through flawed automated advice, compromised systems or operational malfunctions.
Gartner advises that General Counsel should take responsibility for reviewing existing insurance arrangements to identify any gaps in AI-related coverage. This includes assessing whether current providers offer products that explicitly address AI risks and determining how these might complement existing policies.
The company also recommends leading a cross-functional assessment of AI risk, involving teams from compliance, legal, marketing, cybersecurity and IT.
Such an exercise should consider the potential impact of AI-related incidents, including regulatory penalties, litigation and reputational harm, and may also support discussions with insurers when seeking appropriate coverage.
“As AI incidents surge and insurers increasingly add AI exclusions to traditional policies, companies face growing exposure to legal, financial and regulatory fallout from algorithmic failures,” commented Alissa Lugo, Senior Director Analyst in the Gartner Legal & Compliance Practice. “GC should be evaluating a new wave of ‘affirmative AI insurance’ offerings that provide targeted coverage for risks, such as hallucinations, bias, IP infringement and safety failures.”
“Currently, AI risk is not sufficiently addressed through the combination of internal risk management practices and traditional business owners’ insurance policies, which could lead to large financial losses or brand injury,” continued Lugo. “GC need to be thinking carefully about how their organisations will be covered in the event of AI-related legal claims.”
“Ultimately, the rise of affirmative AI insurance signals a simple reality: companies that fail to prepare for AI‑driven liability may soon find themselves exposed,” added Lugo.
