All kinds of insurer will at some point need to risk assess AI systems where these influence their commercial policy-holders. AI systems automatically generate selected information outcomes intended as advice or for direct control of processes. Who is liable for any attributable damage? The question applies now, or will soon apply, wherever information processing is routine. The answer: liability is vicarious. Whoever authorises the use of the AI system is strictly liable. This is a direct consequence of the way in which AI systems work. Understanding AI Systems An AI system is software which takes the place once solely occupied by meticulous analytical logic programming. It provides an automated decision-making process between the prompt for an information response and the output of that response. However, unlike conventional programming, AI systems are probabilistic, not analytical. Decisions are weighted according to the probability with which they simulate successful outcomes in da