AI Adoption Fuels Security & Legal Concerns for IT Service Providers, Survey Finds
Berlin, Germany – A new survey reveals that the increasing adoption of artificial intelligence (AI) by IT service providers is accompanied by important anxieties surrounding intellectual property rights, technological vulnerabilities, and potential legal liabilities. The study, conducted by IT-Matchmaker, highlights a growing need for clearer regulations and expanded insurance coverage as companies navigate the complex landscape of AI implementation.
According to the survey, 36% of IT service providers cite concerns over intellectual property rights as a major obstacle to wider AI adoption, while another 36% point to the inherent vulnerability of the technology to errors. A substantial 84% of respondents are advocating for clearer regulation governing the use of intelligent systems. This demand reflects a broader uncertainty, with 71% reporting client hesitation regarding the “permitted use” of AI and adherence to legal norms. Moreover, 53% of providers themselves express uncertainty about the correct procedures and regulatory requirements when deploying AI solutions.
The fear of financial repercussions is also escalating. Claims for compensation related to alleged poor AI performance are on the rise,with 55% of IT service providers reporting an increase in such demands compared to the previous year – leaving only 25% unaffected.
Alongside legal concerns, the survey underscores a heightened cybersecurity threat. 64% of German companies experienced at least one to ten cyberattacks in the last twelve months,with 3% reporting over ten attacks. Company infrastructure – encompassing servers, cloud systems, mobile devices, and iot systems – is identified as the most common entry point for attackers by 81% of respondents. Attacks via suppliers, cloud servers, and compromised emails also contribute to the threat landscape.
“The widespread use of artificial intelligence by IT service providers comes with complex risks,” stated Marc Thamm, Product head Technology & General Liability at Hiscox. “errors in AI systems,data protection violations or liability issues can quickly led to significant damage.”
Reflecting this concern, 85% of those surveyed prioritize clear stipulations within their insurance policies regarding coverage for AI use and potential damages stemming from AI-based solutions. hiscox has responded by explicitly incorporating AI risks into its IT liability insurance offerings.”Companies can only exploit the potential of this technology if they know that they are protected in the event of an emergency,” thamm added.
Jürgen Frisch contributed to this report.
