Scenario Library / Privacy
Privacy

Model memorises and regurgitates personal data

Researchers extracted verbatim training data, including real names and contact details, from a deployed language model. A similar leak in a business AI tool could reveal personal data to other users.

Cross-industry Not dated Hypothetical; built from a precedent

Insurance products that may respond

Cyber (privacy liability)Tech E&O

Why it matters for insurance

Mitigations include data filtering and output controls. Market note: cyber cover is built around breaches and intrusions, so an AI-output disclosure may not trigger it.

Could your AI create this exposure?

See how AI-aware Tech E&O, Cyber, and D&O respond, and get a program built for your risk.

This is an educational research summary built from public information. Allegations in pending cases are unproven, and the insurance notes above are for discussion, not coverage advice. Whether any policy responds depends on its specific wording, exclusions, endorsements, the facts, and applicable law.

Reviewed by Andrei Craciunescu, CA Licensed Insurance Broker #4467994