Everyone’s talking about how they use AI — from chatbots to process automation, meal planning, and even companionship. But beneath the convenience, there’s a growing divide in how different generations use AI — and an even greater divide in how aware they are of the risks.
A new Associated Press–NORC poll shows that 60% of Americans use AI at least some of the time, mostly for searching information. Among adults under 30, that number jumps to 74%. Young adults are not only using AI for quick searches but also for brainstorming, meal planning, and even work-related projects.
However, fewer Americans are using AI for complex or professional tasks. Only about 4 in 10 people say they use AI for work, while a third use it to help write emails, edit images, or create content. These numbers highlight how AI’s promises of productivity haven’t fully translated into everyday life — yet.
As AI technology becomes more embedded in our devices, search engines, and workflows, its use will only expand. But so will the potential for harm.
The Hidden Dangers of Artificial Intelligence
AI is often portrayed as an efficient, tireless assistant. But there’s a darker side to the technology that’s rarely discussed outside of tech and insurance circles.
AI systems can hallucinate — confidently generating false or misleading information that appears legitimate. This isn’t just inconvenient; it can lead to dangerous real-world outcomes when people rely on AI for medical, legal, or financial advice. One wrong suggestion could lead to a costly business decision, a legal liability, or even personal harm.
AI can also manipulate behavior. Algorithms trained to maximize engagement have been shown to influence how people think, vote, and interact. Worse, the rise of AI-generated misinformation, deepfakes, and cloned voices blurs the line between what’s real and what’s not, allowing bad actors to scam, deceive, or emotionally exploit unsuspecting users.
And then there’s the psychological risk. Younger generations, especially those under 30, are experimenting with AI chatbots for companionship — a trend accelerated by social isolation during the pandemic. But reliance on AI companionship can distort emotional health, replacing real human connection with artificial affirmation.
Even workplace use poses dangers. Overreliance on AI for emails, decisions, or creative work can dull human judgment and creativity. Some professionals are already expressing concern that AI is eroding their writing skills, critical thinking, and originality.
Why These Risks Matter for Businesses and Innovators
The more AI is integrated into business operations — from automation tools to data analytics — the greater the liability exposure. Errors in code generation, biased algorithms, data breaches, or unintended misuse of AI tools can lead to major financial losses and reputational damage.
Yet most traditional business and technology insurance policies exclude AI-related risks. That means if an AI system causes financial harm, privacy violations, or regulatory non-compliance, the loss often falls entirely on the company.
Why Hendrickson Insurance Specializes in AI Risk Coverage
At Hendrickson Insurance, we understand that AI is not just another emerging technology — it’s a new class of risk.
Most insurance carriers haven’t caught up yet. Their policies are designed for yesterday’s threats — property loss, cyber breaches, and professional liability — not the unique and evolving exposures created by artificial intelligence.
That’s why we’ve developed specialized coverage tailored for:
- AI startups and software developers
- Data and analytics firms
- FinTech and automation platforms
- Accounts receivable and process-driven businesses adopting AI
Our AI-focused insurance solutions protect innovators from the unseen dangers of automation — from AI errors and algorithmic failures to data misuse and misinformation liability.
In a world where artificial intelligence is rewriting the rules of risk, Hendrickson Insurance is here to protect those writing the future.