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Underwriters Weigh InTM Survey
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Q4
On a scale of 1 to 10, how likely are we to see a material amount of litigation and regulatory enforcement actions regarding “AI Washing” due to companies overhyping a product or service’s use of AI? 10 is 100% likely.
2025 Survey Results:
When we asked this question for the first time last year, the most popular answer was eight, so this year’s ra ting is down slightly from that but still at a relatively high level.
Woodruff Sawyer Commentary
Carriers believe this is a serious risk. Based on their commentary, it’s also clear they are resigned to the inevitability of these kinds of suits even though the severity has not yet materialized.
Underwriter Comments
I don’t like to revisit a risk for renewal and see their public filings laced with AI capabilities for products that used to be free of AI-pumping language.
It feels like the bar to bring an allegation of AI washing is incredibly low, especially in the environment of short-seller reports garnering so much attention.
I am not convinced it will be the tidal wave that some are predicting but feel it will be an above-average issue that is litigated.
It’s already happening, and companies are doing ridiculous stuff like sticking AI on the end of their name with no real AI tech or strategy. The plaintiffs’ bar is loving it as it makes it so easy to sue them.
We don’t need 50 different AI chatbot companies, despite what the recent [MBA] grads will try to tell the VCs.
