--- title: The Hidden D&O and EPL Risks in AI description: while 78% of companies use AI in some form, most lack board oversight, policies, or training, leaving executives vulnerable to regulators and lawsuits. image: https://koppingerins.com/hubfs/keeping%20a%20human%20in%20the%20loop.jpg --- [![Koppinger & Associates logo](https://koppingerins.com/hs-fs/hubfs/01609-KA-Logo-CC-1.png?width=1800&height=384&name=01609-KA-Logo-CC-1.png "Koppinger & Associates logo")](https://koppingerins.com) [![Koppinger & Associates logo](https://koppingerins.com/hs-fs/hubfs/01609-KA-Logo-CC-1.png?width=1800&height=384&name=01609-KA-Logo-CC-1.png "Koppinger & Associates logo")](https://koppingerins.com) - [Home](https://koppingerins.com) - Solutions - [Business insurance & P&C](https://koppingerins.com/business-insurance-pc-solutions) - [Employee benefits & HR](https://koppingerins.com/employee-benefits-and-hr-solutions) - [Knowledge Center](https://koppingerins.com/blog) - [About](https://koppingerins.com/about) - [Contact](https://koppingerins.com/contact) - [HR Library](https://auth.zywave.com) # The Hidden D&O and EPL Risks in AI June 04 2026 Categories: [P&C Solutions](https://koppingerins.com/blog/tag/pc-solutions), [HR Solutions](https://koppingerins.com/blog/tag/hr-solutions), [Latest Updates](https://koppingerins.com/blog/tag/latest-updates) ![The Hidden D&O and EPL Risks in AI](https://koppingerins.com/hubfs/keeping%20a%20human%20in%20the%20loop.jpg)  **The Hidden D&O and EPL Risk in AI**  AI tools like conversational chatbots, predictive analytics, and hiring algorithms have escaped IT control. For CEOs and CFOs, this creates core governance, disclosure, and liability risks that threaten enterprise value, investor trust, and personal exposure. Surveys reveal that while 78% of companies already use AI in some form, most lack board oversight, policies, or training, leaving executives vulnerable to regulators, lawsuits, and the question boards now face: **"Can you prove you're managing AI effectively?"** Regulators, lawyers, employees, and investors are scrutinizing AI claims, risk disclosures, and executive controls. This often triggers classic **D&O liability (directors & officers lawsuits)**, and **EPL  (employment practices liability) claims.** **D&O Exposure:** **Directors & Officers claim examples from poor AI oversight:** **EPL Exposure:** **Employment Practices Liability from AI in HR** **Michigan-Specific Rules:** **Key Board Questions:** **Action Steps for Executives:** **Bottom Line:** AI creates value with proper governance, but liability without it. Start building oversight today, and make sure you have the right insurance advisor in your corner to review your D&O and EPL coverage for AI gaps. They’ll help you stay ahead of Michigan’s evolving rules and protect your leadership team from tomorrow’s claims. Contact us now to audit your program.  **Secure Board AI Oversight to Avoid Tomorrow's Lawsuits Implement AI Policies Before Regulators Come Knocking #TeamKoppinger - Advisors Who Understand AI Liability**        - - - - [mailto:?subject=The%20Hidden%20DandO%20and%20EPL%20Risks%20in%20AI&body=The%20Hidden%20DandO%20and%20EPL%20Risks%20in%20AI%20https://koppingerins.com/blog/the-hidden-do-and-epl-risks-in-ai](mailto:?subject=The%20Hidden%20DandO%20and%20EPL%20Risks%20in%20AI&body=The%20Hidden%20DandO%20and%20EPL%20Risks%20in%20AI%20https://koppingerins.com/blog/the-hidden-do-and-epl-risks-in-ai) [Previous post](https://koppingerins.com/blog/reform-bill-protects-michigan-businesses-from-hidden-litigation-funding) [All posts](https://koppingerins.com/blog) ## Related Articles #### [MI Supreme Court to Rule on Paid Sick Leave](https://koppingerins.com/blog/mi-supreme-court-to-rule-on-paid-sick-leave) #### [Website Accessibility - Is Your Business a Target?](https://koppingerins.com/blog/website-accessibility-is-your-business-a-target) #### [Are you Considering Temporary Employee Furloughs or Layoffs?](https://koppingerins.com/blog/are-you-considering-temporary-employee-furloughs-or-layoffs) [![01609-KA-Logo-WH](https://koppingerins.com/hs-fs/hubfs/01609-KA-Logo-WH.png?width=300&height=64&name=01609-KA-Logo-WH.png "01609-KA-Logo-WH")](https://20500700.hs-sites.com/) 3060 Commerce Dr. Suite 4 Fort Gratiot, MI 48059 At Koppinger & Associates, we are a team of dedicated insurance advisors who put the needs of our clients first. 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