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Perception of generative AI technology in the insurance industry is a bag of mixed feelings
Original article seen at: www.techspot.com on October 17, 2024
tldr
- 🔑 Generative AI is seen as both a risk and opportunity by insurance executives.
- 💡 77% of executives believe their businesses need generative AI to stay competitive.
- 👥 Only 29% of customers are comfortable dealing with AI-powered virtual support.
- 📈 IBM suggests using generative AI to build tailored, flexible insurance products linked to realistic risk data.
summary
Despite the rising costs of generative AI investments, companies are still grappling with the potentially disruptive effects of this new algorithmic paradigm. IBM's recent research reveals a disconnect between the priorities of insurance companies and their customers. The study, which involved 1,000 insurance c-suite executives in 23 countries and 4,700 insurance customers in nine countries, found that opinions among executives are almost evenly divided on generative AI outcomes. While 49% see the technology as a risk, 51% consider it an opportunity. A significant 77% of executives believe their businesses need generative AI to keep up with competitors. However, only 29% of insurance customers felt comfortable dealing with AI-powered virtual support. IBM suggests that insurance companies should use generative AI to build more tailored products that are flexible and linked to realistic risk data. They must also address the trust issue, ensuring that their AI behaves ethically and giving local (human) experts the ability to connect the algorithm to the insurance value chain.starlaneai's full analysis
The article highlights the growing interest in generative AI within the insurance industry, despite its challenges. The technology, while seen as a potential disruptor, is also viewed as a necessary investment to stay competitive. However, the low level of customer comfort with AI-powered support indicates a significant hurdle to overcome. The suggestion to use generative AI to create more tailored and flexible products could be a potential solution, but it also raises questions about the ethical behavior of AI and the need for trust. The article indicates a need for collaboration between AI and human workers, which could have implications for job roles and responsibilities within the industry. The increasing investment in generative AI, despite its challenges, suggests a significant impact on the AI investment landscape. However, the article does not explore the potential ripple effect of this technology on other industries.
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starlaneai's Ratings & Analysis
Technical Advancement
70 The article discusses the use of generative AI in the insurance industry, which is a significant technical advancement. However, the technology is still in its early stages and faces challenges in terms of adoption and trust.
Adoption Potential
40 The adoption potential is moderate. While many executives see the need for generative AI, customer trust and comfort with the technology is low.
Public Impact
60 The public impact is high. The use of AI in the insurance industry can lead to more tailored and flexible products. However, there are concerns about trust and comfort with AI-powered support.
Innovation/Novelty
50 The novelty of the article is moderate. The use of AI in the insurance industry is not new, but the focus on generative AI and the challenges it presents is a fresh perspective.
Article Accessibility
30 The accessibility of the article is low. The article uses technical language and does not provide a clear explanation of generative AI for a general audience.
Global Impact
40 The global impact is moderate. While the article focuses on the insurance industry, the challenges and opportunities of generative AI are relevant to other industries as well.
Ethical Consideration
50 The ethical consideration is moderate. The article mentions the need for ethical behavior of AI and the importance of trust, but does not delve deeply into these issues.
Collaboration Potential
60 The collaboration potential is high. The article suggests that human experts should work with the AI algorithms, indicating a need for collaboration between AI and human workers.
Ripple Effect
50 The ripple effect is moderate. The use of generative AI in the insurance industry could influence its use in other industries, but the article does not explore this potential.
Investment Landscape
70 The AI investment landscape change rating is high. The article discusses the increasing investment in generative AI despite its challenges, indicating a significant impact on the AI investment landscape.