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    Home»Machine Learning»Hallucination Insurance: When AI Lies, Who Pays the Bill? | by MKWriteshere | May, 2025
    Machine Learning

    Hallucination Insurance: When AI Lies, Who Pays the Bill? | by MKWriteshere | May, 2025

    Team_AIBS NewsBy Team_AIBS NewsMay 19, 2025No Comments1 Min Read
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    When Digital Assistants Go Rogue, Who Pays the Invoice?

    Within the high-stakes theater of company AI deployment, a brand new participant has entered from an sudden route: the insurance coverage business.

    Like a security web showing beneath a tightrope walker mid-performance, Lloyd’s of London insurers have launched first-of-its-kind protection for losses attributable to AI hallucinations and errors, signaling a profound shift in how companies handle the dangers of deployed AI methods.

    This improvement isn’t any coincidence. As AI chatbots more and more deal with buyer interactions throughout industries, their errors can transcend mere embarrassment to create real monetary legal responsibility.

    With corporations investing hundreds of thousands in AI customer support options, the emergence of specialised “hallucination insurance coverage” represents each a safeguard and a warning:

    the AI revolution has matured to the purpose the place its failures have quantifiable prices that have to be managed like every other enterprise threat.



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