Other parts of this series:
Insurers that recognize the importance of quickly building momentum in their AI strategies are gaining a big advantage over their more cautious competitors.
While many insurers are yet to see significant returns from their investments in artificial intelligence (AI), some carriers are already reaping big rewards.
These high-performers are reporting business improvements worth four to five times their investments in AI solutions. Some have even achieved a tenfold return on such investments.
What are these insurers doing to achieve such impressive returns? They’re implementing AI on a big scale. They’ve got momentum mindsets. Most of them are applying AI to more than one business process. Some are even deploying intelligent technologies across the whole of their value chain.
To realize AI’s huge potential, insurers should swiftly implement these technologies on a large scale. AI, as I discussed in my previous blog post, needs to be at the heart of companies’ business strategies.
Far-sighted insurers that are embracing AI, and quickly embedding these technologies across their organizations, are building a substantial lead over their more cautious competitors. While quickly rolling out intelligent technologies in many different contexts, these progressive companies are able to experiment and adjust their new applications to best suit their needs. This “course-correct” approach gives them the momentum they require to quickly extend AI to all the critical components of their businesses. What’s more, it reduces the pay-back period on their AI investments and boosts early financial returns.
“Companies that hesitate to fully embrace AI, risk putting themselves at a severe disadvantage.”
Insurers that have yet to generate profits from AI have tended to take a traditional approach to adopting new technologies. They’ve looked closely at many intelligent technologies. They’ve tried to anticipate the challenges they might face. Then they’ve devised ways of overcoming possible obstacles. Only after they’ve taken these steps do they start introducing AI into their organizations.
This approach is too slow. It fails to recognize AI’s capacity to quickly and powerfully disrupt established markets. It therefore puts hesitant firms at a big disadvantage to their more nimble and courageous competitors that are rapidly building up AI momentum. Our research shows that AI Leaders, companies that have achieved momentum in the roll-out of their intelligent solutions, outperform AI Laggards, firms that are still piloting these technologies, in five key areas of business.
- Talent recruitment
- Sales and marketing
- Commercial products and services
- Customer service
Insurers that cede such advantages to their competitors will most likely struggle to catch up. They’ll lack the knowledge and experience they need to accelerate their AI programs and build sufficient momentum to challenge the early front-runners. They’ll have missed a critical opportunity to grow and strengthen their businesses.
Our research shows that the further a company progresses in implementing AI, the more value it can reap from its investments in these technologies. The advantages that AI Leaders hold over AI Laggards are likely to increase as they extend their commitment to intelligent solutions.
Companies that hesitate to fully embrace AI risk putting themselves at a severe disadvantage. A disadvantage they may find difficult to overcome.
In my next blog post, I’ll discuss how AI can help insurers transform their businesses and open new revenue streams. In the meantime, have a look at these links. I’m sure you’ll find them useful.