That’s the view of the majority of insurance industry executives polled by professional services firm Accenture. Three quarters of respondents believe that AI will significantly alter or completely transform the overall insurance industry through into the next decade.
However, the executives are less convinced that their own organization will be completely transformed (32 per cent) or significantly changed (39 per cent).
“The adoption of artificial intelligence is gaining momentum within insurance, with executives pointing to AI’s potential to revolutionize the customer experience and empower agents, brokers and employees,” said John Cusano, senior managing director and global head of the Accenture Insurance practice.
Among the executives, most (79 per cent) believe that AI will enable insurers to revolutionize the way insurers gain information from and interact with their customers. Data analysis is also viewed as a key use of the technology.
There are challenges though, especially around the implementation of AI into existing systems and in areas such as data quality, privacy and infrastructure compatibility.
“As the technology evolves, insurers will need to not only address data quality and privacy concerns, but also revamp their IT architectures to support AI’s features and technical dependencies,” said Cusano.
For those that get it right though, Cusano sees several advantages.
“Insurers that focus on empowering people with a human-AI experience and intelligently integrating AI into their company will benefit from a powerful combination that drives deeper customer engagement, stronger brand loyalty and more-sustainable profits,” he said.
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Increased use of artificial intelligence will transform the insurance industry over the next three years but there are challenges for its implementation.