However, firms, clients and insurers will have to consider the novel risks presented by innovation
As the impact of AI on professional services firms continues to expand, firms, clients and insurers will be grappling not only with the potential ramifications for workforces, but also with how liability and risks should be allocated and insured in this brave new world.
An examination of the root causes of professional liability claims often reveals that the same familiar errors are to blame – most commonly administrative/organisational errors rather than technical issues. However, professional practices, and risk management tools, are changing with the shifting sands of modern business.
AI is already changing the way that firms operate and the benefits are clear. AI has the potential to operate as a "risk reducer" and can be utilised to automate document/data-heavy work in an efficient and, usually, accurate way. The resultant streamlining and redeployment of staff should allow professionals to focus on more complex and intellectually stimulating tasks.
However, legal issues will inevitably flow from these new methods of service delivery. Some will be familiar, such as ensuring that software providers preserve client confidentiality and data security. Others may be more novel, such as the standard of care owed when a task is carried out quickly and cheaply using AI, how professionals should ensure the quality of the work product and where responsibility lies for errors arising from defective software or failures in understanding how best to use it.
Overall, there is a sense that the professions are at the start of a dramatic shift in how they operate. Those involved in risk and liability may face some challenges along the way if they are to stay ahead of the curve.