Generative AI: A Game-Changer in Insurance
By Puneet Bajpai, SVP – Data Sciences and Risk Intelligence, Xceedance
The advent of Generative AI is creating opportunities for insurers to address challenges around data-driven decision-making, customer engagement, and optimizing operations. As per McKinsey, generative AI could potentially unlock between 35% to 70% more economic value than traditional AI deployments resulting in a plethora of new use cases.
The launch of ChatGPT4 in November 2022 brought forth considerable excitement around large language models and deep learning to analyze patterns and generate instant output. The opportunities that it presented to sharpen the claims lifecycle and the underwriting process, to name a few, are immense. However, there are challenges too as generative AI is rather new and untested, especially in a business where human expertise remains an invaluable component to customer engagement.
In this whitepaper, we explore some specific use cases of generative AI across the insurance value chain while also exploring the challenges that may arise out of its implementation. There is also the larger question of ethical and regulatory concerns that needs to be investigated. The author also explores some best practices that can be embraced in the deployments in order to draw the best outcomes from a generative AI-led digital transformation.