ChatGPT reached a million users in just five days, while Bank of America's AI assistant Erica has handled over two billion customer interactions without human intervention. The AI revolution in banking isn't coming—it's already here, transforming how financial institutions operate and creating complex liability questions few insurance policies directly address.

Mark Waldeck, Team Leader and Broker with CRC Chicago, takes us beyond the marketing hype to explore the serious insurance implications of AI implementation in banking. While chatbots and automated systems promise efficiency and competitive advantage, they create significant exposures most banks haven't fully contemplated.

Current insurance policies remain largely silent on AI-specific risks, creating ambiguity about whether claims would fall under professional liability or cyber coverage. Employment risks also loom large as banks leverage AI to reduce headcount, potentially triggering discrimination claims if not handled properly.

Perhaps most concerning is the regulatory vacuum surrounding AI implementation. Without clear guidance from regulatory authorities, financial institutions are developing practices that may later require significant overhauls once regulations catch up with technology.

Connect with your CRC Specialty broker to better understand how your insurance program addresses these emerging AI risks and explore additional resources at crcgroup.com.

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