The insurance industry is increasingly adopting AI to streamline operations, automate tasks and improve customer experiences. But while AI automation, in particular, has become a standard assistive tool in many insurance professionals’ tool stacks, it has significant limitations—especially in guiding greener professionals through complex claims and underwriting situations.

Generative AI (GenAI)—the latest AI technology that generates data-driven responses and ideas—represents a novel opportunity to support these less-experienced insurers and even seasoned veterans with reliable recommendations for next steps. For example, GenAI models can analyze customer interactions in real time and recommend policy upgrades, risk management strategies or proactive measures to avoid costly claims and losses. In these scenarios, GenAI lifts some of the burden off understaffed and overworked insurance companies, giving employees the tools and data-driven recommendations they need to determine the next best action.