Generative AI poses E&O risks for media and entertainment companies | Insurance business America
Insurance must adapt its approach to new risks
Insurance News
By Gia Snape
The emergence of generative artificial intelligence (Gen AI) offers limitless possibilities and new possibilities for the global media, film, television and entertainment industries.
At least one insurance leader is calling on the industry to adapt its approach to the risks of new technology.
Ros Breese (pictured), underwriting director – media, film and television at Tokio Marine HCC International, said the rapid development of Gen AI has sparked intense discussions in the media insurance industry.
The technology poses a number of novel risks that differ significantly from traditional content creation methods, raising concerns about “how and when it is OK for our customers to use generative AI to create content and how insurers address this risk.” can manage and evaluate,” Breese told the insurance business.
She said the unique nature of these risks, combined with the rapidly evolving landscape, has led to a cautious approach to AI and generative AI among media and film companies.
Media, film and entertainment companies exposed
The industry’s cautious stance is also due to notable legal cases, such as an ongoing New York Times lawsuit against ChatGPT owner Open AI over the use of archival footage in generative AI tools.
The US news organization claimed its copyright was infringed in the model training. The lawsuit, which also names Microsoft as a defendant, states that the companies must be held accountable for billions of dollars in damages.
“There is nervousness in the media industry about when it is OK to use AI, whether as a research tool or for content that may later be published,” Breese said. “Everyone has a different perspective on it. There is uncertainty about what is acceptable, particularly from an insurance perspective. Will insurers cover claims for content created with generative AI?”
The enormous challenge of tracing original ownership rights to content in GM material leaves companies vulnerable to intellectual property claims. As generative AI becomes more widespread, the insurance industry will need to adapt its approach to the risks involved, Breese argued.
“All the content belongs to someone,” she said. “In traditional television production, there are criteria for clarifying the rights of authors and third-party content providers. That’s not possible with generative AI.”
Genetic AI risk management should include developing protocols to trace the origin of content and establishing a chain of responsibility between customers and generative AI tools. Legal clarity and landmark cases like the New York Times lawsuit will also play a critical role in shaping future insurance strategies.
“I think we will probably end up looking at it in the same way as other content and working with insurers to mitigate claims. That means identifying what generative AI is being used for and ensuring we can track the original content owner, creating a chain of responsibility between them.” “You and the AI tool,” she said. “We are on a journey.”
Beyond fictional content, how has the media landscape changed since COVID-19?
The extremely dynamic risk landscape in media recently led Tokio Marine HCC to establish a global media division dedicated to risk insurance in the media, film, television and events sectors.
Breese, who was selected to lead the department, joined TMHCC in 2018. She has over 25 years of industry experience and has held senior positions at Beazley, Hiscox and Markel.
Aside from the technological challenges, the media consumption landscape itself is also changing, heavily influenced by the pandemic. There is a clear trend away from traditional production content towards shorter, more digestible formats such as podcasts, said Breese.
“As an insurer, we are seeing a lot more podcast material than ever before, particularly in the true crime genre. There is a lot of interest in documentaries that use archival footage, as opposed to big-budget dramas,” she noted.
“If you look at streaming services today, there is a huge portfolio of documentaries that we wouldn’t have seen five or 10 years ago. We see a clear trend away from fictional drama towards factual content.”
This trend requires a different approach to risk management. Documentary filmmakers, for example, face particular challenges when it comes to obtaining permission from people who appear in their work and deleting archival footage.
“It’s important for a documentary filmmaker to make sure they get permission from everyone who is in the documentary, which can be a minefield in itself,” Breese said.
The complexity of deleting archival material and the use of defense measures such as “fair use” and “fair dealing” further complicate the production process. These challenges, Breese says, highlight the need for specialized insurance solutions tailored to the nuances of documentary and factual content production.
Breese recommended brokers working with clients in the media and film industries stay abreast of evolving risks and their clients’ unique coverage and risk management needs.
“The more open the relationship and conversation is to all parties in the insurance chain, the more it helps,” she said.
Can you comment on the risks of using generative AI in the media, film and entertainment industries? Please leave a comment below.
similar posts
Stay up to date with the latest news and events
Join our mailing list, it’s free!
Source link
2024-06-13 19:05:46
www.insurancebusinessmag.com
