AI becomes a business risk

Allianz warns of AI as a business risk

According to Allianz Commercial, artificial intelligence has become one of the biggest global business risks for companies. In the current “risk barometer” of the corporate insurer, the technology jumps from tenth to second place - right behind cybercrime, which has topped the list for years. The close connection between these two risks is obvious: criminal hackers are increasingly using AI to perfect their attacks.

Allianz Commercial, a subsidiary of the Munich DAX group Allianz, publishes this risk report annually at the beginning of the year. The current survey is based on responses from 3,338 professionals from 97 countries. Among the participants are executives, risk and claims consultants, insurance brokers, industry experts, and Allianz employees themselves. Even though the responses vary regionally, there is a worldwide consensus on the assessment of the danger: in Germany, the AI risk ranks fourth, in Switzerland already second - and in Austria, it is even at the top.

The top three risks combined

Cybercrime, artificial intelligence, and business interruptions dominate the list of the biggest threats to companies. These three risks are directly related. Business interruptions often result from cyberattacks - especially through so-called ransomware attacks. In these cases, hackers encrypt a company's systems and demand ransom for their release.

“Perhaps both a curse and a blessing”

Michael Furtscheller, regional manager for Germany and Switzerland at Allianz Commercial, describes artificial intelligence as “perhaps both a curse and a blessing.” The technology brings undeniable advantages - especially in the automated defense against cyber threats. Nevertheless, Allianz emphasizes the resulting risks.

The danger posed by AI is not limited to criminal use. Even the legal application by employees can be problematic, for example, when decisions are made based on faulty or incomplete AI-generated information.

AI as a tool for perpetrators

A growing risk arises from the misuse of AI for social engineering. Michael Daum, head of cyber claims at Allianz Commercial, reports on targeted deception attempts through AI-generated content: “By writing very tailored emails that prompt someone to click or do something else, whether with cloning or the generation of speech, or even the forgery of videos.” The human component remains central: “The vast majority of attacks we see still require human involvement - usually an employee - to enable the attack.”

Dangers from within the house

The risks are not limited to external attacks. Internally, the use of AI also poses dangers. Alexandra Braun, manager at Allianz Commercial, warns about the autonomy of the systems: "AI by definition works with a certain degree of autonomy and therefore the results can be wrong or fabricated."

Wrong decisions based on unreliable AI results can lead to legal disputes or reputational damage - especially if the content is discriminatory or otherwise problematic. There is also the risk of copyright infringement if AI systems adopt or recombine protected content without permission.

A wide range of other risks

In addition to AI and cybercrime, the risk barometer identifies a wide range of other dangers. In fourth place is the risk from legislation and regulation, which includes US customs policy, trade barriers, or complex bureaucracy in many countries.

Natural disasters and climate change follow in fifth and sixth places. Political instability and violence are in seventh place, while negative economic developments such as inflation are mentioned in eighth place. Fire and explosions are in ninth place. The top ten business risks conclude with uncertainty about market developments, such as new competitors, company acquisitions, or technological disruptions.

Cross-industry relevance

The Allianz risk barometer illustrates: dealing with artificial intelligence is no longer just an IT issue. The impacts extend deep into strategic corporate management and risk policy. Whether manufacturing, service sector, or trade - AI is a topic with direct relevance for all industries.

With material from dpa