The future of AI in the insurance industry
Only a few insurers have extracted outsize value from AI to gain a competitive edge. Joining their ranks requires a strategic, comprehensive approach that rewires the enterprise.
Once in a great while, a technological innovation comes along that changes the world, and businesses have to adjust—or potentially decline into irrelevance. The Industrial Revolution’s steam engine and the mechanization of production allowed for a shift from largely agrarian to urban lifestyles. The birth of the internet brought us enhanced real-time communication, e-commerce, cloud computing, and more.
Now, it’s AI’s turn. This powerful technology is rapidly transforming workflows, driving innovation, and reshaping industries. As with other transformative changes brought by technology, it will be hard if not impossible for companies, including insurers, to ignore AI. About two decades ago, as e-commerce became ubiquitous and more sophisticated, consumers got used to seamless ordering and fast delivery and came to expect those capabilities from all merchants. Similarly, AI has changed consumer expectations to the point that customers now expect higher accuracy and reliability during the consumer journey, human-like conversations with AI bots (whether text- or voice-based), hyperpersonalized offers and communication, and on-demand products and interactions tailored to their needs.