When companies claim they're using AI to drive growth, those claims can drive stock prices. But what happens when the AI story doesn't deliver? D&O brokers are feeling the impact.
00:00 When companies tell investors they're [music] using AI to drive growth, those claims can move stock prices. But what happens when the AI story doesn't
00:08 deliver and investors who bought in on the strength of it lose money? They sue and those lawsuits land on D&O policies.
00:20 We've already had 13 this year versus 14 total last year. I think if we have a stock market [music] correction, we're going to see a lot more of those. The
00:28 fear is that a wave of AI related investment hype has inflated expectations and that when the correction comes, shareholders will look
00:36 for accountability [music] from the boardroom down.
00:39 We may be coming up on a bubble pop here and when [music] the bubble pops, we may see a lot more of these security claims.
00:45 The gap between what companies are promising investors on AI and what they [music] can actually deliver is where the next wave of D&O claims is building.
00:54 For more expert insight from our professional risk leaders network, check out our full roundt available now at Insurance Business TV.
