What if artificial intelligence (AI) was considered a partner in managing risk rather than a detriment? What if businesses could harness the power of AI to mitigate risk instead of distressing over its exposure? What if the emerging technology was embraced as a job creator rather than labor disruptor?
In a recent study by The Hartford, nearly half of the business leaders surveyed said they have risk concerns about AI.1 While the new technology presents an opportunity that many are starting to leverage, it is raising alarms, primarily around job displacement, data security, privacy or cyber risk and ethics.
However, AI deserves more hope than trepidation. Like past technologies, it can lead to generational increases in productivity, and where labor conditions may be challenged, they will evolve to work alongside AI. The critical question is how businesses will identify and manage exposures as AI technology is adopted. It’s also critical that companies are putting appropriate emphasis on risk management during the development phase so the likelihood of a net positive gain will increase.
Of course, productivity can change labor conditions and shift job functions, but new technologies like AI can spur industries that are unimaginable today. It’s important to remember that past technological cycles took 20 to 40 years to play out. While AI seems to be coming much faster than past technological changes, particularly when factors such as implementation, change management and overall adoption are considered, there is still an opportunity to think critically and be proactive by allowing labor to find a way forward with the new technology.
Now Is the Time To Invest
Employing risk professionals that have expertise in AI technology can help increase the chances of long-term success. And as more and more businesses develop, test and productionize systems, it is particularly important to have a diverse team in place. The focus should be on using risk management expertise to improve data quality, testing, warnings, checks and other processes that will eliminate risk or mitigate the exposure if something does go wrong. These risk professionals, alongside the business practitioners, IT professionals, data scientists, legal experts and compliance officers, will provide a well-rounded group of stakeholders that can help projects move forward at an appropriate pace for the given organization.
For instance, a warehouse might want to reduce the risk of workplace injuries by having AI-enabled robots complete higher hazard tasks. These robots can take on tasks like carrying heavy materials or entering workspaces that would require humans to wear protective gear to guard against noise or toxic chemicals. Having the robots take on these tasks will reduce risk, but it’s also important to consider the impact on the employees working alongside these robots, which might increase risk. It’s essential to understand both the risks and benefits of introducing autonomous robots into operations to ensure a net positive reduction in risk and business benefit.
It's also important to remember that whoever uses robots understands their liability and the availability of appropriate insurance. Users should spend time thinking about risk transfer and understanding the policy. If something goes wrong, the insurer will evaluate whether it was caused by the manufacturer’s design or if the company using the robots designed the constraints incorrectly. AI technology requires more collaboration between the creators and users than past technology innovators, which is a good thing but also makes the line of liability grayer.
Today, more and more businesses run on technology. If that technology, including AI, fails, it can have a big impact on finances. Having an experienced team of risk specialists who understand the business and process while also understanding AI, can help. Employing just one or the other won’t be sufficient.
Learn more from The Hartford's 2025 Risk Monitor report.
1 The Hartford’s 2025 Risk Monitor Report, viewed April 2025.
