Generative AI creates E&O exposures for media and entertainment ...
The advent of generative artificial intelligence (gen AI) presents boundless opportunities and new exposures for the global media, film, TV, and entertainment industry. At least one insurance leader is calling on the industry to adapt its approach to risks posed by the new technology.
Risks and Challenges in the Industry
Ros Breese, underwriting director – media, film & TV at Tokio Marine HCC International, highlighted the unique risks associated with generative AI in the media and film sector. The rapid development of gen AI has sparked intense discussions within the industry, leading to concerns about content creation, risk assessment, and insurance coverage.
One notable legal case involves the New York Times lawsuit against ChatGPT owner Open AI over the use of archival material in generative AI tools. This case underscores the challenges in determining original content ownership in gen AI material, leaving companies vulnerable to intellectual property claims.
Adapting Risk Management Strategies
To address the evolving risk landscape, the insurance industry must develop protocols to trace content origins and establish a chain of responsibility between clients and generative AI tools. Legislative clarity and landmark cases, such as the ongoing lawsuit, will play crucial roles in shaping future insurance strategies.
Tokio Marine HCC has recently launched a global media division dedicated to underwriting risks in the media, film, television, and events sectors. This strategic move reflects the industry's need to adapt to emerging risks and provide specialized insurance solutions.
Shift in Media Consumption Landscape
Breese also highlighted the shift in media consumption patterns, influenced by factors such as the pandemic. There is a growing trend towards shorter, more digestible formats like podcasts and documentaries that use archival footage.
As the industry evolves, documentary makers face challenges in securing permissions and clearing archival footage. This complexity underscores the need for tailored insurance solutions to address the nuances of documentary and factual content production.
Advising Brokers and Industry Professionals
Breese advised brokers to stay informed about evolving risks and client coverage needs in the media and film sector. Open communication and understanding of the unique challenges in content production are essential in mitigating risks and ensuring adequate insurance coverage.
As the industry navigates the complexities of generative AI and evolving content trends, collaboration among insurers, clients, and industry professionals will be key to managing risks effectively.
