AI Misinformation Could Leave Travelers Out of Pocket, Warns Squaremouth

In a digital age where artificial intelligence is reshaping travel planning, a significant majority of travelers are embracing AI tools to navigate the complexities of trip insurance, according to new research from Squaremouth, a U.S.-based travel insurance comparison platform.

The survey of 2,500 travelers found that 81% considered AI tools helpful when researching travel insurance options. Additionally, nearly half of respondents reported using AI platforms to plan their trips, with ChatGPT emerging as the most popular choice among these digital assistants.

This growing reliance on AI for travel planning comes as the technology becomes increasingly accessible to consumers. Travel experts note that AI tools can quickly compare multiple insurance options, explain policy details in plain language, and help travelers identify coverage gaps that might otherwise go unnoticed.

Despite the enthusiasm for AI-powered travel planning, the survey revealed concerning gaps in consumer awareness regarding insurance coverage. Squaremouth highlighted that most travelers were unaware of a critical limitation: standard travel insurance policies typically don’t cover disruptions stemming from AI-generated errors.

“The convenience of AI comes with certain risks that travelers should recognize,” said a spokesperson from Squaremouth. “If ChatGPT provides incorrect flight times and you miss your connection, or if it gives inaccurate visa information resulting in denied entry to your destination, your insurance policy likely won’t cover those losses.”

The survey identified several common scenarios where travelers encountered problems with AI-generated advice. These included booking flights with incorrect time zone information, making hotel reservations that turned out to be invalid, and following inaccurate visa guidance that resulted in entry denials at international borders.

Perhaps most concerning, 34% of respondents reported receiving false or misleading travel information from AI platforms. Despite these documented inaccuracies, 44% of travelers said they trusted AI as much as traditional information sources such as travel agents or conventional search engines.

This level of trust comes at a time when the travel industry continues to experience significant disruptions. Earlier this year, Squaremouth reported a 74% increase in travelers specifically searching for insurance policies with flight delay coverage, highlighting ongoing concerns about air travel reliability.

Industry analysts suggest this combination of factors—increasing reliance on AI, gaps in coverage understanding, and ongoing travel disruptions—creates potential vulnerabilities for travelers who may be overestimating the reliability of artificial intelligence tools.

In response to these findings, Squaremouth has issued practical guidelines for travelers using AI for trip planning. The company recommends verifying all AI-generated information with official sources before making travel arrangements. For instance, flight times should be confirmed directly with airlines, and visa requirements should be checked through official government websites.

The insurance comparison platform also advises travelers to consult licensed insurance professionals rather than relying exclusively on AI for coverage recommendations. These experts can explain nuances in policy language and coverage limitations that AI might not fully capture or communicate.

Finally, Squaremouth emphasizes the importance of thoroughly understanding policy terms—specifically what scenarios are covered and, perhaps more importantly, what circumstances are excluded from coverage.

As AI tools continue to evolve and improve, the relationship between travelers, technology, and insurance will likely grow more complex. For now, the research suggests a hybrid approach—leveraging AI’s convenience while verifying critical information through traditional channels—may offer travelers the best balance of efficiency and security.