2025 State AI Laws Expand Liability, Raise Insurance Risks

This article was originally published by Law360 and is available here and as a PDF here.

As 2025 nears its end, claims professionals should be aware of trends in liability-expanding state legislation that addresses artificial intelligence use.

The rapid integration of AI into myriad business functions and everyday life has, unsurprisingly, led to numerous avenues of AI liability exposure. In addition to common-law causes of action regarding AI impacts, state legislatures have been enacting laws to regulate AI at a brisk pace. These laws address topics ranging from professional licensing to whistleblower protections, and many of these laws have created new private rights of action and civil liability exposures.