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Can AI Create Employment Practice Liability Exposures?

Can AI Create Employment Practice Liability Exposures?

AI systems can help companies’ advertise open positions, analyze resumes, test applicants, and identify top-performing employees for promotions. According to industry data, over one-third (35%) of businesses utilize AI systems.

While these systems offer various benefits, such technology may also pose employment practices liability (EPLI) exposures. Specifically, AI systems, although intended to provide impartial results, may contribute to discriminatory employment decisions if the algorithms and data sets entered into these systems end up being biased against specific groups.

One of Many Developments in the EPLI Market

While conversations about AI are gaining steam, it’s just one of many developments and trends to watch that can impact the EPLI market. In our market outlook, we’ve identified three others you’ll want to keep and eye on this year. Find our complete 2023 Market Outlook: Employment Practices Liability Insurance (EPLI) Edition here.

Contact Burnham WGB Insurance Solutions

You don’t have to navigate your employment practices liability on your own. Our Commercial Risk Management Advisors are here to help. Please feel free to contact the insurance and risk management experts at Burnham WGB for assistance or to get a competitive quote.