Artificial Intelligence — Managing the Risk and Potential

Artificial Intelligence — Managing the Risk and Potential
Aon Insights Series UK

05 of 13

This insight is part 05 of 13 in this Collection.

July 9, 2025 3 mins

Artificial Intelligence — Managing the Risk and Potential

Organizations are eagerly exploring the innovations, challenges and opportunities surrounding this rapidly developing technology.

Artificial Intelligence (AI) is rapidly transforming industries by offering innovative solutions to longstanding challenges.

Aon is actively exploring AI's potential, focusing on key use cases to enhance efficiency and drive growth.

The deployment of AI varies significantly across industries, with traditional rule-based AI already established in sectors like telecommunications to optimize traffic routing and network performance.

Meanwhile, agentic AI — which can make decisions and act autonomously to achieve specific goals, often with limited human supervision — is gaining traction in customer-facing roles, such as retail, where it aids in processing refunds and answering product queries.

A major aspiration for AI is to alleviate "process drudgery" by automating repetitive tasks and providing data-driven insights without the need for extensive human intervention. In the financial services sector, AI is being leveraged for anomaly detection, fraud prevention, market analysis, and as an employee co-pilot.

However, firms face challenges in model selection, development, and ensuring data integrity.

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It’s really really important to keep the human in the loop.

Sarah Armstrong-Smith
CISO, Microsoft

AI's rapid advancement brings risks, particularly concerning the security of AI tools and models. Business leaders must approach AI adoption strategically to maximize benefits while minimizing downsides. This involves defining use cases, assessing current capabilities, and deciding whether to build, buy, or license AI solutions. Risk management should be a priority from the outset, as each positive application of AI has potential negative implications.

The integration of AI impacts the workforce by accelerating skills development and reducing the need for specialization, while increasing the speed of execution. Leaders must be aware of these changes and prepare for the evolving landscape.

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It’s going to be amazing as we shift into these next-generation models and capabilities.

Jon Thompson
Head of Data Security and AI, Barclays

Insurance for AI-related risks is currently fragmented, with coverage driven by specific use cases. As the market evolves, it is expected that affirmative cover will be integrated into existing policy wordings, with specialized products developed for AI model producers and developers.

AI represents a significant opportunity, providing access to data and analytics that enable informed decision-making without the traditional resource and time constraints.

 

This article is current as of May 2025.

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