The Autonomous Vehicle Liability Crisis # Self-driving cars were promised to eliminate human error and make roads safer. Instead, they have created a complex liability landscape where crashes, injuries, and deaths have triggered hundreds of lawsuits, billions in regulatory penalties, and fundamental questions about who bears responsibility when AI-controlled vehicles cause harm.
The Algorithm Denial Crisis # Workers’ compensation insurers are deploying artificial intelligence to process claims at unprecedented scale, and the results are devastating for injured workers. AI systems trained on historical data perpetuate systemic biases, while rule-based algorithms deny complex claims that require human judgment. The result: vulnerable workers denied benefits they’re legally entitled to receive.
When Algorithms Decide Family Fate # Artificial intelligence has quietly entered family courts across America. Risk assessment algorithms now help determine whether children should be removed from homes. Predictive models influence custody evaluations and parenting time recommendations. AI-powered tools analyze evidence, predict judicial outcomes, and even generate custody agreement recommendations.
AI in Employment: The New Discrimination Frontier # Artificial intelligence has transformed how companies hire, evaluate, and fire workers. Resume screening algorithms, video interview analysis, personality assessments, performance prediction models, and automated termination systems now influence employment decisions affecting millions of workers annually. But as AI adoption accelerates, so does evidence that these systems perpetuate, and sometimes amplify, discrimination based on race, age, disability, and gender.
When AI Becomes the Debt Collector # The debt collection industry, historically notorious for harassment and intimidation, is rapidly adopting artificial intelligence. AI chatbots can contact millions of debtors in days. Voice cloning technology creates synthetic agents indistinguishable from humans. Algorithmic systems decide who gets sued, when to call, and how aggressively to pursue payment.
The Case That Could Reshape AI Hiring # Mobley v. Workday, Inc. is the most significant legal challenge to AI-powered hiring tools in American history. After a federal court granted class certification in May 2025, the case now represents potentially millions of job applicants over age 40 who were rejected by Workday’s algorithmic screening system.
Liability Allocation # Who is liable when AI makes a mistake, the user, deployer, or vendor? # The short answer: it depends on the circumstances, but deployers typically bear primary responsibility.
The Insurance Industry’s AI Reckoning # The insurance industry faces an unprecedented challenge: how to underwrite risks from technology that even its creators don’t fully understand. As AI systems increasingly make decisions that traditionally required human judgment, and increasingly cause harm when those decisions go wrong, insurers are scrambling to adapt products designed for a pre-AI world.
The High Stakes of Diagnostic AI # When artificial intelligence gets a diagnosis wrong, the consequences can be catastrophic. Missed cancers, delayed stroke treatment, sepsis alerts that fail to fire, diagnostic AI failures are increasingly documented, yet lawsuits directly challenging these systems remain rare. This tracker compiles the evidence: validated failures, performance gaps, bias documentation, FDA recalls, and the emerging litigation that will shape AI medical liability for decades.
Key Takeaways Most professionals don’t know if their malpractice insurance covers AI-related claims, and increasingly, it doesn’t Major carriers (AIG, Berkley, Hamilton) are actively rolling out AI exclusions Verisk’s 2026 standardized exclusions could reshape market-wide coverage overnight New AI-specific policies are emerging (like Armilla’s Lloyd’s-backed coverage), but adoption is limited Action required: Ask your carrier directly about AI coverage before renewal, don’t assume The Growing AI Coverage Gap # Professional liability insurance was designed for a world where humans made decisions and mistakes. As AI tools increasingly participate in professional services, from legal research to medical diagnosis to financial advice, a dangerous gap is emerging between the risks professionals face and the coverage they assume they have.
The AI Litigation Explosion # Artificial intelligence litigation has reached an inflection point. From copyright battles over training data to employment discrimination class actions, from product liability claims for AI chatbots to healthcare AI denial lawsuits, 2025 has seen an unprecedented wave of cases that will define AI accountability for decades to come.