Mitigating AI Risk in the Supply Chain: Insurance Strategies for Risk and Recovery

With global weather and political instability increasingly impacting the global supply chain, businesses are turning to AI to enhance efficiencies, protect goods in transit, monitor facilities, and detect fraud.  But as the use of AI increases, so do the risks associated with its use. In this evolving risk environment, businesses reliant on a stable and predictable supply chain must not only assess how AI can increase efficiency, but also how insurance can serve as a critical backstop when systems go awry.  This program examines the role of insurance in managing both traditional and AI-related risks affecting the global supply chain, highlights coverage options tailored to supply chain exposures, and outlines key steps to maximize recovery after a loss.  In this program, Michael S. Levine, Latosha M. Ellis, and Charlotte E. Leszinske will:

1. Evaluate Risks Posed by AI by identifying supply chain risks posed by AI technology;
2. Identify Insurance and other Risk Transfer Options available to mitigate supply chain risk, including traditional insurance policies and products targeted to the supply chain industry; and
3. Analyze Practical Insights from real-world examples and hypothetical scenarios where AI may contribute to or prevent a loss and how insurance may respond in the event of a claim.

Whether you are an attorney, risk manager, corporate counsel, or other member of the supply chain industry, this presentation will deliver much-needed insights about how AI may impact your clients or business and how insurance can provide additional protection from loss.

Learning Objectives: 

1. Understand the risks posed by AI technology to businesses engaged in the supply, distribution and logistics industries

2. Discuss pros and cons of insurance coverage available to the supply chain industry to address AI-related risks and threats and mitigate potential liabilities

3. Consider how AI technology and insurance may intersect in the event of a claim and develop strategies to maximize any potential recovery