“Artificial intelligence” (AI) is splashed across the daily headlines. For example, an AI application recently beat the human Go champion, autonomous cars are edging closer to mainstream use, social bots mimic human interactions and converse with others in social networks, and there are hedge funds managed by AI. However, there is some concern that AI will take over human jobs and even pose an existential threat to humans (like the “Skynet” program in the popular “Terminator” movies).
Executive SummaryPwC's Dr. Anand Rao and Joseph Calandro Jr. explain RiskBots and UWBots—artificial intelligence applications that can augment the decision-making of commercial underwriters for emerging risks and complex risks, like supply chain risks. Also discussed: the role of Robotic Process Automation in underwriting routine small-business risks.
While the presence of AI in consumer-based interactions and applications (e.g., voice interfaces in mobile phones and consumer products, intelligent search, etc.) is reasonably well known, their enterprise applications are still in their infancy.
In this article, we look at some of the advanced applications of AI in commercial insurance. Some leading commercial insurers are already implementing or piloting them, and other potential applications are technically feasible and are likely to be piloted within the next couple of years. (A related article, “Artificial Intelligence and Personal Insurance,” is available online here.)
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