The world of N2G is constantly growing and advancing, exploring new ways to help our customers and developing innovative ideas and insights. Keep up to date with the latest news and information about our services and solutions.
The AI Imperative: Strengthening Global Competitiveness While Managing Emerging Liability
By Blake Berry | March 5, 2026
Strategy: How can AI be used today to strengthen a multinational’s competitive position and what risks does that pose from an insurance perspective?
Artificial Intelligence (AI) is no longer an emerging technology. AI is transforming how multinational corporations compete, manage risk, and engage customers. Its benefits, whether they be speed, efficiency, or insight, are counterbalanced by new challenges of regulatory complexity, ethical concerns, and new liability exposures. The next three years will determine which organizations embed AI responsibly and which fall behind.
From a strategic perspective, AI can make a multinational company’s supply chains more dynamic, and it can anticipate maintenance. Automation in these areas is estimated to reduce costs from ten percent to twenty percent. However, overreliance on one or a few models can expand liability by increasing the chances of algorithmic error and exposure to cybercrime. As it relates to insurance, underwriters must be diligent for new silent AI exposures in professional indemnity or product liability policies, which may be triggered by poor algorithmic decision-making.
Risk & Compliance: What steps should multinationals take now to ensure AI adoption complies with global regulations?
Multinational corporations face an evolving patchwork of regulatory frameworks worldwide between the EU AI Act, various state-level initiatives, China’s Interim Measures for the Management of Generative Artificial Intelligence Services, and specific industry specific regulations worldwide.
Multinational corporations would be wise to map each jurisdiction’s requirements and establish AI governance boards with clear accountability at executive and board levels. Multinational corporations should also identify, document and classify every AI application used within the organization, whether it is built in-house, purchased from a vendor, or embedded inside another platform.
Compliance failures could trigger regulatory penalties, reputational damage, and claims against the multinational company’s directors or officers. A common scenario is when investors, regulators, or stakeholders allege that executives failed to manage or disclose AI-related risks properly, such as algorithmic bias, misuse of customer data, or non-compliance with emerging AI laws. Insurance companies are increasingly considering this a governance exposure, not just a technology one.
Customer & Market Impact: How can AI be applied to improve customer service and market insights across regions? What exposure does that bring to the company?
AI can transform how multinationals understand and serve their customers across different geographies with different languages. If it is properly applied, it enables hyper-personalized service, round the clock customer engagement, regional sentiment analysis and dynamic pricing across various jurisdictional markets. For instance, it can handle multilingual queries. AI models can also anticipate service needs before the customer contacts the company.
Increased reliance on AI introduces new reputational and privacy risks, specifically when customer interactions feel cold, intrusive and biased. Misinterpreted AI output could also misinform market decisions, which could lead to financial or regulatory consequences.
People & Culture: What skills and training should global employees focus on to work effectively with AI? How should companies protect their workforce from the panic of AI taking their jobs?
Artificial intelligence will not replace human employees, but people who understand how to use AI will become more efficient and will replace those who don’t. For multinational companies, the human dimension of AI adoption is both a strategic advantage and a potential fault line. The challenge is twofold, (1) equipping employees to collaborate effectively with AI systems, and (2) protecting morale by addressing the fear of automation.
AI transforms roles across every mode of work, from manufacturing floors to the C-suite. Employees no longer need to be computer scientists to work productively with AI, they need to understand how to make effective prompts and when to rely on their own human reasoning.
Future Outlook: What practical investments should multinationals make in the next few years to stay relevant as AI evolves?
To remain competitive as AI evolves, multinationals should invest in:
- Robust data infrastructure
- Model governance and validation tools
- Cross-border AI hubs
- Ethical and transparent AI frameworks
- AI insurance partnerships
Strategic Outlook and Closing Reflections:
Artificial intelligence has become a defining strategic capability for multinational corporations, offering unprecedented opportunities to enhance operational efficiency, strengthen global competitiveness, and deepen customer engagement. Yet these advantages carry corresponding regulatory, ethical, and liability considerations that demand disciplined governance and forward-looking risk management. As AI systems become further embedded across supply chains, customer-facing functions, and workforce operations, multinationals must balance innovation with accountability to ensure robust compliance structures, comprehensive employee training, transparent model oversight, and appropriate insurance protections. The organizations that succeed will be those that treat AI not merely as a technological upgrade but as an enterprise-wide responsibility, aligning its adoption with sound governance, prudent risk controls, and a long-term commitment to trustworthy and sustainable use.
Follow us on LinkedIn
Blake Berry
Chief Claims Officer, General Counsel - N2G
