As artificial intelligence becomes more deeply embedded in business operations, insurers are facing a growing challenge in understanding where the technology is being used and what exposures it could create.
Cyber risk intelligence provider KYND has launched a new AI detection capability designed to give underwriters an independent view of the technologies operating across a business.
The capability uses a single domain to identify AI technologies across an organisation’s external digital footprint. Rather than relying on information provided by the business, it gives insurers an additional data point that can be considered alongside proposal forms and underwriting discussions.
The technology is designed to address potential gaps in self-reported AI usage. While insurers are increasingly expected to understand how policyholders deploy AI, businesses may not always have complete visibility of the tools operating across their organisations.
Research from IBM highlights the potential consequences. One in five organisations reported a breach last year linked to “shadow AI”, referring to AI tools being used without formal approval or oversight. Organisations with high levels of shadow AI also recorded average breach costs $670,000 higher than those with little or none.
KYND co-founder Melanie Hayes said, ‘Proposal forms and underwriting conversations remain essential, but AI use is changing rapidly and businesses themselves may not always have complete oversight of the technologies being used across their organisation.
‘Giving underwriters independently observed information means the conversation can start with greater visibility of what is detectable on the risk, helping underwriters ask more informed questions and build a clearer picture of the exposure.’
KYND’s detection capability identifies AI applications and features visible across an organisation’s infrastructure. These include AI assistants and chatbots, generative AI tools, AI embedded within marketing and commerce platforms, and AI crawlers permitted by an organisation’s infrastructure.
The launch follows KYND’s white paper, The Wild West of AI Risk, which examined the gap between AI adoption and disclosure. The report warned that undisclosed AI use could go unidentified during underwriting and contribute to hidden concentrations of risk across insurers’ portfolios.
The technology could also be applied beyond individual underwriting decisions. Portfolio and reinsurance teams can use the information to identify common AI technologies and dependencies across multiple insured organisations, helping insurers assess potential accumulation risk.
Hayes added, ‘As AI becomes more deeply embedded across businesses, insurers will increasingly need to understand where common technologies and dependencies are appearing across their books.
‘The industry is still building its understanding of how AI-related losses will develop. Being able to identify those dependencies now gives insurers a stronger foundation to understand and manage exposure as it evolves.’
AI detection forms part of KYND’s wider technology detection suite, which also identifies payment and cloud services, analytics, tracking pixels, session-recording tools, identity and access management systems and website-building platforms. Together, these capabilities are designed to give insurers greater visibility into the technology dependencies behind individual risks and across their wider books of business.
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Copyright © 2026 RegTech Analyst
