The insurance industry is continuing to assess how rapidly evolving technologies like generative AI (Gen AI) can streamline their business operations. Examples of this technology's transformative impact are appearing almost daily. For instance, AI-powered chatbots and intelligent search tools have greatly enhanced information accessibility for employees, leading to reduced training times and greater productivity. Moreover, Gen AI has proven effective in automating coding tasks and enhancing quality assurance processes. Yet for all the promise Gen AI holds in this new chapter of digital transformation for the insurance industry, like any new technology questions abound about the implications for both the workforce and customers.
As the insurance industry moves forward in its Gen AI journey, stopping to think through the implications for workers and customers and focusing on fostering a culture that embraces adaption and learning will be critical.
Employees and clients
While some have raised concerns about job displacement, ultimately Gen AI's ability to take on mundane and repetitive tasks presents a tremendous opportunity to enhance human capabilities and boost productivity. By automating routine duties, Gen AI can free up employees to concentrate on more complex and value-added activities, such as customer engagement, risk assessment, and strategic decision-making. However, striking the right balance between automation and the human touch is crucial, especially in sensitive customer interactions.
As automated systems manage straightforward cases, such as approvals and rejections, human underwriters are left to tackle the most complex and challenging ones. This shift may result in a more demanding workload for employees. Therefore, it is critical organizations support their workforce in adapting to these changes.
Insurance companies must also carefully consider the other side of the equation-that being the customer experience implications of Gen AI to help ensure that the technology enhances, rather than detracts from, the quality of service provided. It is essential to design AI systems that complement human expertise and empathy, rather than replace them entirely. Positioning the technology as a tool to eliminate tedious administrative tasks and empower employees to focus on high-value work is key.
Promoting ongoing education
Change in tactics also necessitates a change in mentality and approach. In this case, to drive successful deployment of the technology in the sector, the industry must embrace a shift in organizational culture towards continuous learning and adaptation. Cultivating a learning environment that promotes employee skill development and flexibility is crucial. Think about just two years ago when Gen AI was not driving mainstream conversation. The pace of change has been remarkable and for the insurance sector remaining nimble and encouraging ongoing learning to provide the necessary training to help employees work effectively alongside AI technologies will be imperative in 2025 and beyond. This includes nurturing both technical skills and soft skills such as critical thinking, problem-solving, and emotional intelligence.
As insurance companies navigate the adoption of Gen AI, as noted they must confront the dual challenges of evaluating its business value and managing its impact on the workforce. Identifying the appropriate applications for these costly tools requires a strategic approach, focusing on high-value use cases and clear customer demand. Some companies are establishing AI client councils to brainstorm ideas, prioritize focus areas, and ensure proper governance within a regulated industry.
The road ahead
Early adopters have faced difficulties in testing and effectively utilizing Gen AI tools, but as they advance along the learning curve, instances of success are beginning to surface. However, achieving large-scale adoption and realizing full value remains elusive. Most insurers are opting for a cautious, targeted approach instead of a broad, indiscriminate deployment. By balancing business value with human impact, insurance companies can leverage Gen AI to boost productivity and allow employees to focus on higher-value tasks.
