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RAND finds AI losses in insurance are tied mostly to fake content
A RAND study covering 713 generative AI incidents logged since ChatGPT’s launch found 599 cases, or about 84%, involved misinformation, with many disputes turning into copyright fights.
Insurance Business reports that a peer-reviewed RAND Corporation report describes AI as already causing real-world harm that is beginning to show up in insurance risk questions, with early losses focused more on fake content and copyright disputes than on operational failures.
The report, published September 16, drew on public incident records, AI litigation, enacted state laws, and admitted-market policy filings, plus interviews with insurance and legal specialists, and concluded that insurers are being asked to carry the risk of misinformation and related legal conflicts first.
RAND’s analysis used the volunteer-run AI Incident Database and isolated 713 generative AI incidents logged since ChatGPT’s launch in November 2022. Of those, 599 incidents, about 84%, involved misinformation, underscoring how quickly disputes over AI-generated content are surfacing in the claims and litigation pipeline.
Insurance Business also noted RAND’s earlier finding that many carriers are not addressing AI explicitly in their wordings, potentially leaving coverage open to interpretation and dispute as lawsuits accumulate.