- 73% of insurance executives see artificial intelligence as a major investment priority
- Business leaders have “made significant progress in understanding AI”
- Productivity is still a big attraction, but compliance and security can be concerns
New KPMG data has revealed that nearly three-quarters (73%) of insurance executives now see AI as their top investment priority, with the technology increasingly being used across underwriting, claims, onboarding and customer service.
This is because, according to the report, 92% of financial services companies have generated profits using artificial intelligence.
Although many are eager to invest in artificial intelligence, only about one in three (32%) have actually seen returns from any meaningful measure.
Insurance and finance companies are eager to invest in artificial intelligence
Despite a slow start, they remain hopeful, with two-thirds (67%) expecting AI-derived returns within the next one to three years, up from 21% when the same question was asked two years ago. The same number of executives also plan to allocate 10-20% of their budgets to artificial intelligence.
KPMG described AI as a strategic priority for most insurers, noting that boards and C-1 executives have “made significant progress in understanding AI” and now see it as a strategic business issue rather than just another IT tool.
But as with any technology adoption, slow adopters risk being left behind. ‘Emerging’ insurers with limited AI proof-of-concepts are said to have other investment priorities instead, which include building a solid AI foundation.
“As AI moves from experimentation to enterprise capability, organizations that build a foundation that is scalable with quality data are best positioned to realize sustained value,” noted Tech, Data and AI Lead for Insurance Riccardo Altenburg.
Still, the outlook is positive, as AI is generally seen more as an opportunity than a risk. Productivity and efficiency gains are still high on the list, as well as improved quality and data analysis.
On the flip side, compliance and security risks are holding many back, and a growing number of companies are now worried about becoming dependent on Big Tech.
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