Insurance’s gen AI reckoning has come

After years of hype and pilot projects, the insurance industry is entering a more demanding phase of its relationship with generative AI. Brokers and carriers are still investing heavily, but the conversation has shifted: what, exactly, is the return on investment, and how long will it take to materialize?

That question has become sharper as evidence from other industries tempers expectations. An MIT paper published earlier this year suggested that as many as 95% of firms have yet to realize measurable ROI from AI initiatives.

At least one expert argues the insurance industry may ultimately outperform that benchmark, but only if firms abandon “silver bullet” thinking and anchor AI deployment to specific operational problems.

“Insurance is an interesting industry because it usually is a little bit behind in adopting technologies,” said Anurag Shah, chief data officer at SIAA, the independent insurance agency alliance. “But when it comes to data and AI, it is probably one of the industries that can have the maximum impact, because the fundamental asset of this industry is data. So, there is a lot of potential for AI to play a role.”