CFC has launched affirmative AI cover within its intellectual property policy to address questions concerning training data, ownership, infringement, liability and AI-generated outputs. The new wording confirms that claims involving AI are covered so long as they otherwise meet the policy’s coverage requirements.

CFC says the move reflects the mainstream use of AI in the creation, development and commercialisation of intellectual property. The insurance provider is engaged in a programme to embed affirmative AI cover across its portfolio and recently announced enhancements to its financial institutions products.

Maddi Brown, IP practice leader at CFC, said: “AI is creating enormous opportunities for businesses, but it is also introducing new and increasingly complex intellectual property risks. Questions can arise at every stage of the AI lifecycle, from the data used to train a model and the technology itself to the outputs it produces.

“The legal and regulatory position remains uncertain and varies significantly across jurisdictions, making it difficult for businesses to assess their exposure.”

She added: “Our affirmative AI wording gives policyholders greater clarity. It confirms that where an AI-related intellectual property claim would otherwise be covered, the involvement of AI alone does not create uncertainty around how the policy responds.”