AI will enhance risk assessments: FM

The insurer also shared 8 risks businesses should be aware of.

Commercial property insurer, FM, warned of eight risks the global business environment must be on the lookout for this 2025 – which will mainly be shaped by advancements in artificial intelligence (AI), climate risks, energy demand growth, and supply chain vulnerabilities.

AI will extend into industrial settings, enhancing productivity but introducing property risks. Increased demand for data centres and modular nuclear reactors will add to energy generation needs. 

Geopolitical instability will disrupt supply chains for semiconductors and battery materials.  

Generative AI is expected to drive more sophisticated cyberattacks, targeting industrial controls with outdated security. 

AI will also improve defences, though physical consequences of breaches, such as blackouts, remain a concern. Businesses will prioritise compliance with cybersecurity directives like NIS2.  

Renewable energy projects will face growing risks from natural hazards like hail and windstorms, as well as structural failures and battery fires. Innovations such as hail-resistant solar panels will help mitigate these risks.  

AI will enhance risk assessments, allowing insurers to predict losses with greater accuracy. FM’s models, built on over a billion data points, will support better decision-making and reduce business disruptions.  

Global supply chains will face pressure from cost-cutting and geopolitical tensions. AI will streamline risk assessments across suppliers, enabling businesses to strengthen resilience despite these challenges.  

Geopolitical and policy shifts will drive U.S. companies to reshore production, improving supply chain reliability and product quality.

Domestic production of hail-resistant solar panels is an example of this trend.  

After a record-warm 2024, climate risks such as flooding, hailstorms, and wildfires will remain significant. 

FM will continue investing in modelling tools and solutions to help clients prepare for and mitigate these threats.