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35 Harv. J. L. & Tech. 467 (2021-2022)
Insuring AI: The Role of Insurance in Artificial Intelligence Regulation

handle is hein.journals/hjlt35 and id is 479 raw text is: Harvard Journal of Law & Technology Volume 35, Number 2 Spring 2022 INSURING AI: THE ROLE OF INSURANCE IN ARTIFICIAL INTELLIGENCE REGULATION Anat Lior* ABSTRACT The artificial intelligence (AI) industry is predicted to grow ex- ponentially over the next decade, up to a 14.5% contribution share to Gross Domestic Product in North America by 2030. This growth will lead to a substantial economic impact on retail, transportation, banking, healthcare, and other markets, but it will also lead to AI-inflicted harms. These may include, for example, a robotic security guard running over a toddler, or an AI chatbot making slanderous comments online. The discussion about AI liability has thus far focused on what liability re- gimes should apply to AI-inflicted damages. An appropriate policy re- sponse, however, must include insurance as a regulatory mechanism. Insurance can help avoid legal issues of liability and blame-placing by acting as a governance and regulatory tool to incentivize and channel the behavior of regulated entities. It can enhance the integration of AI into daily commercial routines while mitigating the harms that may arise from this process. By combining research in AI liability with insights from insurance literature, this Article aims to change the way researchers and policy- makers approach AI regulation. Insurance has the power to better han- dle AI-inflicted damages, serving both a preventive and compensatory function. This Article offers a framework for stakeholders and scholars working on AI regulation to take advantage of the current robust insur- ance system. It will discuss the type of insurance policy that should be purchased and the identity of the policyholder. The utilization of insur- ance as a regulatory mechanism will alleviate the risks associated with the emerging technology of AI while providing increased security to AI companies and AI users. This will allow different stakeholders to con- tinue to unlock the power of AI and its value to society. * Post-doc Resident Fellow with the Information Society Project, Yale Law School. I would like to thank Professors Jack Balkin, Rory Van-Loo, Asaf Lubin, Ignacio N. Cofone, Lior Zemer, Guido Calabresi, Shauhin Talesh, Daniel Schwarcz, Daniel Woods, and partici- pants of the Yale ISP workshop and the Law & Technology Workshop at Nebraska Govern- ance & Technology Center for their helpful comments. Thanks to Zoe Kaiser and the fellow editors at the Harvard Journal of Law and Technology for remarkable feedback throughout the entire editing process.

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