To drive better business outcomes, insurers must effectively integrate generative AI into their existing technology infrastructure and processes. Generative AI is a tool within a broader set of techniques and technologies. Accordingly, insurers should improve existing processes and optimize them in parallel to achieve the maximum benefits of generative AI. The big win often involves combining multiple AI technologies to address different aspects of a project, such as semantic searching or language capabilities.
For insurers who are not yet using generative AI, these three initial steps are recommended:
- Establish a multidisciplinary team of businesspeople, IT specialists and data scientists to embark on the generative AI journey, focused on adapting generative AI solutions to the unique requirements of the organization.
- Identify the operating model that best fits the organization, not only in terms of experimenting with the technology but also to deploy it safely, successfully and in a scaled fashion.
- Develop the requisite expertise and capabilities by beginning with low barrier use cases and gradually fine-tuning models based on domain knowledge and data sources.
With AI’s potential exceedingly clear, it is easy to understand why companies across virtually every industry are turning to it. As insurers begin to adopt this technology, they must do so with a focus on manageable use cases.
Risks and human oversight
While generative AI is valuable for identifying risks that humans overlook, the technology itself carries associated risks. These involve elements such as intellectual property, corporate-level reputation and bias, and information security. To mitigate such risks, insurers must embrace accountability and have control procedures and compliance frameworks in place. To ensure ethical and nondiscriminatory generative AI models, responsible AI methods that include human oversight are essential.
Generative AI has the power to transform the insurance sector by increasing operational effectiveness, opening up new innovation opportunities and deepening customer relationships.
But it is essential that insurers proceed mindfully, with the right guardrails in place to manage the risks associated with the technology. Firms that adopt responsible AI practices and avail themselves of leading industry insights will be well positioned to seize opportunities as they arise amid the evolving AI landscape.