Is the insurance industry truly AI-ready? Separating hype from reality

Is the insurance industry truly AI-ready? Separating hype from reality

The buzz around artificial intelligence (AI) is undeniable. For some, AI represents a bright future, while for others, it brings about caution and doubt. With the potential to revolutionise every facet of the insurance sector – from marketing and customer service to underwriting and claims management – AI holds immense promise.

Yet, with such vast potential comes challenges, particularly when it comes to consumer trust. The so-called ‘black box’ nature of numerous AI algorithms has sparked considerable public and academic discourse. Given that the very essence of insurance is trust, this ambiguity introduces a complex conundrum.

IntellectAI, a wealth management solution developer, has released a report that explores how firms can become AI ready.

There’s a palpable sense of scepticism towards AI, primarily because, in many industries, the reality of technology hasn’t matched the hype marketed. AI and machine learning (ML) have been relegated to mere marketing jargon in several quarters.

Consequently, there’s an influx of companies asserting their products are AI-driven when, in fact, they offer basic, rules-based automation. While these products have their merits, they hardly scratch the surface of what genuine AI-driven solutions can deliver.

This exploration seeks to demystify AI in insurance. In the report, IntellectAI explores critical activities necessary for obtaining a firm initial buy-in on AI. It also provides insights into potential technological and application-related risks and limitations tied to AI and reveals strategies to counter these risks, aiming to alleviate prevailing scepticism around AI.

Read the full report here.

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