The health and pharmaceuticals sectors are expected to be the hardest hit by the adverse effects of artificial intelligence over the next decade, according to a new report by Swiss Re Institute.

As the health sector increasingly uses AI technology to streamline functions such as administration, patient monitoring, diagnosis and drug development, the consequences can be serious or even fatal. For instance, flawed or biased AI algorithms could result in misdiagnosis, leading to serious illness or loss of life.

Christoph Nabholz, chief research and sustainability officer at Swiss Re, said: "While IT services are currently the most affected by AI risks as a pioneer in this area, this is set to change as the use of technology becomes more widespread across all industries, such as in health and mobility. Insurance companies are therefore starting to introduce specific cover for AI performance failures – one of the biggest risks for all industries."

The study looks at emerging AI risks across ten industries, exploring the probability and severity of various AI-related loss incidents due to data bias, cyber attacks, algorithmic and performance-related risks.

Other industries most at risk of the adverse effects of AI technology over the next eight to ten years are mobility and transport and energy and utilities, which rank second and third respectively.

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