Artificial intelligence remains a “hot topic” for insurers, Lockton says in a report on the Australian tech sector and what to expect this year.

Some insurers have promoted AI-related endorsements for cyber products while others are exploring possible gaps in cyber and technology errors and omissions coverage.

“Any errors, inaccuracies or negligence in the rendering or performance of AI, supported, or direct AI solutions could ultimately result in liability, and is expected to be a particular focus from consumers, business and regulators in 2025,” the brokerage says.

Tech sector organisations face the challenge of having to identify, mitigate and manage risk and exposure both from the perspective of impacts to themselves and to customers.

The Tech Council of Australia’s leaders survey notes 35% of Australian tech leaders think using AI to drive operational efficiencies is the greatest opportunity for business and for the sector.

“However, the opportunity of organisations and even governments using AI for assisted business decision-making, or automated decision-making across multiple business areas and realms, needs to be understood, and truly managed, before being seized,” the report says.

It says resilience in the cybersecurity space remains more relevant than ever amid increased regulatory oversight

“With generative AI comes an entirely new attack surface for malicious threat actors, but it’s more than that: it’s a whole new attack surface with very little history to extrapolate data from.”

Other key topics for this year include geopolitical risks and evolving employment changes and rights.

Internationally, actions already taken in Donald Trump’s second US presidency could significantly impact tech companies by altering regulatory requirements, while the report notes potential opportunities from a $US500 billion ($790 billion) AI infrastructure project.

“Broader economic uncertainty is still weighing on tech leaders’ minds, with this remaining the top threat to tech companies, followed by lack of skills within teams and lack of budget to invest in areas that require urgent attention.”