Risk

Ungoverned AI is not a marginal risk. In the 2026 Allianz Risk Barometer, AI climbed from tenth to second place among global business risks, the biggest single-year jump in the survey's fifteen-year history. This paper quantifies the aggregate annual financial exposure from ungoverned AI across corporations, governments, and non-profits at between £1.6 trillion and £4.4 trillion globally by 2026, with tail scenarios extending materially higher.