Question 1

What is corporate AI risk?

Accepted Answer

Corporate AI risk refers to the financial, legal, reputational, and operational threats that arise from deploying artificial intelligence systems in business operations, including data breaches, AI hallucinations, regulatory non-compliance, IP theft, and bias-related discrimination.

Question 2

What is AI disaster insurance?

Accepted Answer

AI disaster insurance is a specialized insurance product that covers businesses against financial losses caused by AI system failures, including coverage for AI data breach liability, hallucination damages, regulatory fines, IP infringement from AI output, and business interruption caused by AI system failures.

Question 3

How do I calculate my AI risk score?

Accepted Answer

Your AI risk score is calculated based on factors including the number of AI systems deployed, your annual revenue exposure, the number of employees using AI daily, and your existing AI risk coverage level. AI Frankenstein provides a free interactive AI risk calculator at aifrankenstein.com.

Question 4

Who needs AI liability insurance?

Accepted Answer

Any business with over $2 million in annual revenue that deploys AI systems in production — including customer-facing chatbots, fraud detection models, AI-generated content, and automated decision systems — should consider AI liability insurance.