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AI Governance Glossary
Governance Concept

What Is Silent AI?

Silent AI is AI-related exposure that sits within an insurance policy without being explicitly covered or excluded, leaving it unclear at the time of a claim whether AI-caused loss will be paid.

Definition

Silent AIAI-related exposure that sits within an insurance policy without being explicitly covered or excluded, leaving it unclear at the time of a claim whether AI-caused loss will be paid.

The term echoes "silent cyber," the ambiguity insurers spent years removing from policies after cyber losses surged. As AI is built into more operations, insurers are now making AI explicit — usually by adding exclusions, sometimes by offering dedicated cover — so the silent gap is closing, and not always in the policyholder's favour. The practical step is to check whether your professional-indemnity, D&O, cyber, and liability wordings address AI at all.

Source: Insurance-market practice (by analogy with "silent cyber")

Plain-language explanation

The term echoes "silent cyber," the ambiguity insurers spent years removing from policies after cyber losses surged. As AI is built into more operations, insurers are now making AI explicit — usually by adding exclusions, sometimes by offering dedicated cover — so the silent gap is closing, and not always in the policyholder's favour. The practical step is to check whether your professional-indemnity, D&O, cyber, and liability wordings address AI at all.

Primary source: Insurance-market practice (by analogy with "silent cyber")

Related terms

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