- 73% of insurance CEOs see AI as a top investment priority
- Business leaders have “made significant strides in understanding AI”
- Productivity remains a major draw, but compliance and security may be concerns
New data from KPMG has revealed that almost three-quarters (73%) of insurance CEOs now see AI as their top investment priority, with the technology being increasingly used in underwriting, claims, onboarding and customer service.
This is because, according to the report, 92% of financial services companies have generated profits through the use of AI.
However, while many are interested in investing in artificial intelligence, only around one in three (32%) have actually seen significant returns.
Insurance and financial companies are interested in investing in AI
Despite a slow start, they remain hopeful: two-thirds (67%) expect returns from AI in the next one to three years, up from 21% when the same question was asked two years ago. The same number of leaders also plan to allocate between 10% and 20% of their budgets to AI.
KPMG described AI as a strategic priority for most insurers, noting that boards of directors and C-1 leaders have “made significant progress in understanding AI” and now view it as a strategic business issue rather than just another IT tool.
However, as with any technology adoption, slow adopters risk being left behind. “Emerging” insurance companies with limited AI proofs of concept are said to have other investment priorities, including building a strong AI foundation.
“As AI moves from experimentation to enterprise capability, organizations that build a scalable foundation with quality data are better positioned to realize sustained value,” said insurance technology, data and AI leader Riccardo Altenburg.
Still, the outlook is positive, as AI is generally seen as more of an opportunity than a risk. Productivity and efficiency gains continue to be high on the list, as well as improved data quality and analysis.
On the other hand, 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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