Artificial intelligence (AI) is rapidly proving its business worth across many industries, and insurance is no exception.
Executive SummaryWhether using AI to improve basic business processes and lead management or to better understand customer desires with a sophisticated natural language processing and data mining solution, insurers must address five challenges: building a foundation, resolving glitches, readying stakeholders, dealing with privacy concerns and evaluating their IT landscapes.
AI can enable smarter ways to sell products and services, whether powering robo-advisers for investment management or adding greater intelligence and efficiency to underwriting processes. AI also can help insurers better understand changing market dynamics, competitor activities and, most importantly, customer needs and desires at a very granular level.
Given the extraordinary possibilities, many insurers are jumping on AI investments. But hype-driven, ill-informed investments can lead to loss and disappointment. Before deploying AI, insurers must frankly and fully assess their organizational maturity and market appetite for AI-driven change. They also must be aware of the five challenges to AI adoption and how they will address them. Taking these steps will help insurers quickly benefit from AI’s potential.