Rebuilding AI after a cyber event will be a massive operational challenge
· Posted on: January 28th 2026 · read
As organizations rely more heavily on AI, a critical gap is emerging between technology, business operations and leadership. The reality is that many executives and boards don’t fully understand how AI systems are embedded into operations or what’s at stake if those systems fail. Increasingly, teams are using services like ChatGPT for decision-making, often without stress-testing outputs or validating reliability.
The assumption that these systems are infallible is risky. If a major AI outage occurs, recovery could be slow, complex and expensive. Companies have often spent years building processes around AI, sometimes combining internal and external models. Petabyte-scale AI systems aren’t easy to back up and few organizations have robust contingency plans. In the event of a failure, organizations may need to revert to manual processes, which are not only labor-intensive and costly but also heighten the risk of revenue losses.
The risk is compounded if the AI solution cannot be rebuilt to its prior standard — a challenge that has already emerged in cyber business interruption claims. The insurance industry is grappling with this reality. Underwriting AI exposure requires confidence that organizations can recover, but technical knowledge often doesn’t reach leadership. Insurers may pay claims up to policy limits, yet the organization could still struggle to restore operations fully.
The lesson is clear: Organizations must stress-test AI, prepare contingency plans and ensure that leadership understands the operational risks. Without these steps, a major AI outage could reveal serious vulnerabilities, creating operational challenges and long-term costs. The post-event rebuild isn’t just a technical challenge — it’s a test of organizational readiness and resilience
The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. © 2025 Baker Tilly Advisory Group, LP.
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