An industry expert has pointed out that while some insurance companies are beginning to experiment with artificial intelligence (AI) for specific applications, many still lack an overarching strategy for its use. This gap can hinder long-term progress in leveraging AI's full potential within the industry.
According to the expert, various insurers have made strides in implementing AI for specific tasks such as claims processing and underwriting. These individual use-cases have shown promise, but the broader vision often seems to be missing.
This fragmented approach can lead to inconsistent outcomes and missed opportunities for operational efficiency. Additionally, it can prevent insurers from capitalizing on AI's ability to integrate data across different functions, which is vital for making informed business decisions.
The reluctance to fully embrace AI solutions may be attributed to a "legacy mindset" prevalent in the insurance sector. Many companies are still operating with traditional frameworks that may not readily accommodate technological advancements. This can create barriers to adopting new technologies and methodologies that could vastly improve processes and customer experiences.
This situation affects a wide range of stakeholders, including insurance companies, their employees, and customers. A slow adoption of AI could mean a continued reliance on outdated methods, resulting in prolonged inefficiencies and potentially impacting customer satisfaction.
To effectively navigate the future, insurers may need to rethink their strategies surrounding technology adoption. By developing a more cohesive AI strategy, they can better position themselves for the challenges and opportunities ahead.
Original Source: https://insurancenewsnet.com/innarticle/legacy-mindset-holding-insurers-back-on-ai-expert-says