Love it or hate it, AI…

Love it or hate it, AI is rapidly changing how we live and work. This morning, I joined a webinar discussing how AI is impacting the insurance industry, highlighting both the benefits and challenges. Here are some key points:

1: Speeding Up Processes
AI helps insurance carriers handle tasks like claims and policy approvals much faster. What used to take weeks can now be done in minutes.

2: Personalized Customer Service
AI-powered chatbots and virtual assistants are available 24/7 to answer questions and provide information, making customer service more efficient. However, there's a concern that relying too much on AI might make interactions feel less personal. Also, there are no licensed bots (yet).

3: Fairness and Ethics
AI systems learn from data, and if that data contains biases, the AI can make unfair decisions. Ensuring these systems are transparent and regulated is essential to prevent discrimination. Like any 'system' that relies on 'data' - garbage in, garbage out.

4: Impact on Jobs
While AI can handle repetitive tasks, leading to changes in certain job roles, it also creates new opportunities in tech-focused positions.

5: Data Privacy Concerns
AI relies on large amounts of data, raising questions about how insurance companies collect, store, and protect personal information.

Actuaries and AI work together at the to building systems to increase profitability for insurers. Some models are better than others and there is no perfect one yet.