Over the past decade, property/casualty carriers made serious and necessary investments in front-end digital transformation. Most notably, we built mobile apps and updated portals so policyholders and agents could interact with us far more easily. We learned a valuable lesson during that time: the core systems the front-end technology pulled from needed to be robust and provide a clean “source of truth” foundation.

Now, we’re experiencing a similar transformation as AI evolves in the industry, and the lesson remains the same. AI delivers richer value when it runs on a strong foundational core. That means AI benefits from deep, carrier-specific context through data, workflows and procedures. It also means the output and mechanics of AI work reside in the core platform, creating the audit trail regulators will increasingly demand, which is a theme we’ll return to below.