Aon's Year in Review Highlights Securities Litigation Trends & AI-Related Risks

Aon’s annual review spotlights a rising wave of “AI‑washing” securities lawsuits, where companies exaggerate their AI capabilities and face investor litigation. The number of such AI‑related class actions more than doubled from 2023 to 2024, reflecting growing investor scrutiny. These suits allege that firms overstated their AI use in public filings and disclosures, increasing liability for directors and officers. The report urges companies to audit their D&O coverage to ensure they’re protected against both overstatement and understatement of AI-related risks. It recommends that boards incorporate AI risk disclosures into their ongoing oversight and insurance strategies to mitigate emerging exposures.

Source: Insurance Business Asia

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