To reduce the risk of adverse outcomes, companies should begin by applying AI to cases where the impact of failure is minimal, using these as learning experiences to improve future applications.

AI is effectively transforming internal functions like knowledge retrieval and customer service, areas where its practical application shines by improving efficiency and accuracy.

While AI has transformative potential, companies need to carefully assess how and when to use it, especially in high-stakes applications where incorrect outputs could lead to significant financial or reputational harm.

For well-defined applications such as document processing and summarization, AI presents predictable risks. Companies can mitigate these risks through insurance, enabling them to adopt AI while protecting against unintended outcomes.