Digital Factories can help insurers quickly roll out AI solutions across their businesses.

To maximize the potential of artificial intelligence (AI), insurers need to roll out these powerful technologies quickly, on a large scale, throughout their organizations. The faster people have access to these technologies, the sooner they’ll be able to work smarter and quicker. They’ll also be able collaborate far more effectively.

The business benefits of empowering workers across the organization with AI technologies are substantial. Combining AI with a skilled workforce can dramatically improve the customer experience that an insurer provides. It can also boost the efficiency of core insurance processes, such as underwriting, risk management and fraud detection. What’s more, call-center operations as well as back-office functions such as claims processing and policy changes can also be significantly enhanced.

However, big-scale AI implementations are far from easy. As I mentioned in an earlier blog post, only six percent of carriers have so far installed AI across multiple business units. The rapid roll-out of AI across large, complex organizations requires insurers to carefully co-ordinate changes to a wide array of technologies and business applications. Furthermore, such transformation often requires big changes to the structure of a business as well as considerable attention to training and reskilling staff.

“Digital Factories are proving to be highly effective.”

Critical a big-scale AI implementation is the creation what we call a “Digital Factory”. This innovative approach, sometimes termed a “Smart Automation Factory”, enables organizations to draw together all the business and technology resources they require within a single framework. It combines user-experience designers, customer service specialists, marketing experts and managers responsible for internal processes with technology workers skilled in AI, data science and IT integration.

Digital Factories are proving to be highly effective. Spanish multinational bank BBVA has adopted this concept with its “AI Factory” while French financial services group BNP Paribas has established what it terms a “Cognitive Factory”.

We’ve helped several major clients accelerate their large-scale AI implementations. They’ve quickly created value for their businesses by reducing expenses, boosting revenues and identifying new opportunities for on-going growth.

For Digital Factories to succeed, it’s essential that they’re supported by the organization’s CEO and other senior executives. Business leaders need to champion the work of the Digital Factory, ensure that key operating units are supporting the process, and allocate sufficient resources to the AI implementation. Other essential requirements include:

  • Business strategists should work closely with senior management, and their support teams, to identify potential sources of value, to direct investments needed to realize them and to then track value that has been created.
  • System designers need to ensure that the smart solutions introduced into the organization improve the customer experience and enhance the customer journey mapped out by the business.
  • Data scientists and AI analysts must ensure that the intelligent technologies adopted by the organization further its business objectives.
  • IT systems, processes and infrastructure need to be integrated with new AI applications. Often this will require additional application programming interfaces (APIs) to connect in-house systems as well as to link the business to the IT resources of business partners.
  • Business analysts and process specialists should guide the introduction of AI within the organization to ensure that existing solutions are improved as much as possible and valuable business knowledge is correctly captured.
  • Change management and human resources teams need to define and roll out the training that will be required by employees whose jobs will be affected by the introduction of AI.
  • Governance teams should develop, implement and monitor governance guidelines for the Digital Factory and align these requirements with the organization’s governance framework.

To learn more about the important role of AI in insurance have a look at Technology Vision for Insurance 2019.

To discuss the potential of Digital Factories in the insurance industry send me an email.

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