Bermudian-based Axa XL has unveiled new cyber coverage to help businesses manage risks arising from developing their own generative artificial intelligence models.

Michael Colao, Axa XL’s global chief underwriting officer, Cyber, said: “Looking to improve efficiency, improve customer experience and so much more, more companies are investing in developing their own generative AI to unlock new possibilities.

“They must also be mindful of the risks that come with it, such as potential misuse, compliance issues and the need for robust safeguards to ensure responsible and secure deployment.”

Axa XL’s new endorsement addresses the following new Gen AI risks that clients may face:

Data poisoning: manipulating or contaminating the training data, not just the client’s data, used to develop machine-learning models. By introducing misleading or false information into the training data, attackers can compromise the performance and accuracy of the resulting AI systems, leaving businesses with a costly data clean-up and litigation risks

Usage rights infringement: negligently failing to obtain appropriate permissions to use particular items or data, such as copyrighted materials, software licences and intellectual property in machine learning

Regulatory violations: liability resulting from the European Union’s AI Act, which aims to regulate the development and deployment of AI systems.

Mr Colao added: “Our clients sought help navigating this uncharted territory and, with our brokers’ input and feedback, we’re pleased to develop an innovative, market-leading insurance solution to provide clear coverage for these risks and help them leverage Gen AI without the worry of potential risks and extra costs that could hinder their efforts.”

The new Gen AI coverage is available by endorsement to Axa XL’s CyberRiskConnect policy.