Regulators' guidance on model risk leaves many questions unanswered A Gallagher Re/MIT report found generative # AI -related lawsuits in the U.S. grew 978% betw
A recent report indicates a significant surge in generative AI-related lawsuits in the U.S., with a 978% increase observed between 2021 and 2025. Despite this rise, current regulatory guidance on model risk and insurance policies leave substantial gaps in coverage. This situation creates uncertainty for financial institutions navigating the evolving landscape of AI-related legal challenges. AI
IMPACT Increased litigation and unclear regulatory frameworks may slow enterprise AI adoption and necessitate new risk management strategies.