Artificial intelligence and liability insurance. After a brief introduction to AI, some of the liability issues are introduced in this brief report. AI simulations Essentially AI systems are structured in the following way. The computer is supplied with digital information, coded with a set of statistical tools and a set of purposes that the customer would like to work with. Once data, methods and purposes are properly coded, the AI generates useful simulations of the data and can be used to identify the degree to which new situations meet the set of purposes. Missing data is effectively imputed from the overall model. As a very much simplified example. An example helps set the scene for the discussion of legal liability. Intended purpose: A liability claims manager wants to identify claims which are suited to making an immediate offer, and those which are best examined more closely. Process: Having coded ten thousand claims of the relevant sort, AI generates a statistically weighted s