Gartner Projects 2,000 AI-Related Legal Claims by 2026, Pushing Insurers to Require Risk Controls
Gartner forecasts that more than 2,000 legal claims tied to AI incidents will be filed worldwide by the end of 2026. The projection signals growing financial and legal exposure as organizations scale AI deployments across operations.
General Counsel should begin integrating dedicated AI insurance products into risk management frameworks now, Gartner said. Standard business policies increasingly exclude AI-related losses, leaving companies exposed to claims that fall outside traditional coverage.
What AI Insurance Covers
AI-specific policies address gaps in conventional business insurance. Coverage typically includes financial losses from incorrect or misleading AI outputs, legal exposure from unintentional bias in automated decisions, and intellectual property disputes where AI models allegedly used protected material without permission.
Some insurers now offer performance-based assurances, compensating organizations when AI systems fail to meet agreed benchmarks. Coverage can also extend to tangible damage caused by flawed automated advice, compromised systems, or operational failures.
Insurance Requirements Will Tighten
By 2030, property and casualty insurers will likely require organizations to demonstrate strong AI risk controls before granting explicit AI liability coverage, Gartner said. This shift will drive a 60 percent increase in AI governance and security investments across industries.
Companies with mature governance practices will secure better insurance terms and build stakeholder confidence. Those without adequate controls may face coverage denials or higher premiums.
Steps for Insurance and Legal Leaders
General Counsel should audit existing insurance arrangements to identify gaps in AI-related coverage. This includes determining whether current providers offer products that explicitly address AI risks and how they complement existing policies.
A cross-functional assessment involving compliance, legal, marketing, cybersecurity, and IT teams provides a fuller picture of organizational exposure. This exercise should evaluate potential impact from regulatory penalties, litigation, and reputational harm-information that strengthens negotiations with insurers.
Alissa Lugo, Senior Director Analyst at Gartner, said: "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."
She added: "Companies that fail to prepare for AI-driven liability may soon find themselves exposed."
For more on how AI affects your industry, see AI for Insurance and AI for Legal.
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