Safely Integrating AI into Insurance Workplaces

Safely Integrating AI into Insurance Workplaces

This technology could be used to increase productivity within an organization.

As more insurance companies adopt or consider the benefits of making use of AI technology in their workplace It is essential to look into customized platforms designed specifically for businesses as the Applied Systems leader has suggested.

“It’s definitely worthwhile to spend some time looking at services that expose models that are unique to you, and that have favorable terms and conditions to make sure that you retain copyright,” said Tanner Randolph, chief information security officer at Applied Systems.

But, companies must be aware of the limited application the capabilities of AI systems and the ways they can be utilized in conjunction alongside human intelligence as per Randolph.

“AI doesn’t actually know anything; it predicts what it should use as a next word,” Randolph stated. “It’s really just a prediction model with a lot of data power.”

In an interview in an interview with Insurance Business, Randolph spoke about the ways in which AI or automation if utilized correctly are able to increase productivity. He also dispelled myths surrounding generative technology, and explained why the insurance industry isn’t quick to adopt technological advancements.

“We’re seeing massive productivity gains”

One of the biggest benefits for AI which has been discovered across a variety of industries is the capacity to replace manual or tedious tasks that could be done by machines.

“Some of our internal testing has shown that there is a 40% to 60% increase in productivity,” Randolph declared.

This can be done by creating new ideas and content that can be especially helpful for emails, or in improving the content in them.

Applied Systems tested this out with marketing materials and found that, if certain safeguards are set in position, AI could create innovative customer outreach programs with as little as five minutes of interaction using an intelligent solution.

In order to allow AI to be effectively utilized companies should not only rely on AI to create content or produce outcomes that are independent of human input.

“Internally, we’re seeing a lot of advantages of starting with [AI], and not necessarily finishing with it, but making sure that you’ve got a human in the loop to get the most out of it,” Randolph explained.

In addition, other tasks that are part of the day and, as Randolph noted, “the ticky-tacky stuff” can be removed completely from an insurance company’s list of duties and allowing greater emphasis on building relationships.

“These systems have the potential to keep up with your workflow, and that’s a game changer for a lot of the industry because it is so personal, at least for independent agencies.”

Debunking certain widespread myths

When you introduce a new technology, beliefs or misconceptions will be circulated and influence people’s judgments.

For Randolph the most urgent myth about AI that must be dispelled is the belief of AI can be described as “intelligent.”

He pointed out the Waymo self-driving cars which are currently making rounds of San Francisco, stating that the most efficient method to stop them is to place an obstruction over it.

“In security terms, you’ve just impacted its availability, and it doesn’t know how to operate like that,” said the analyst. “Once you deviate from the norms of the AI model, it has no idea what to do.”

AI is only designed to function within the framework it was designed to achieve success in, so it should not be trusted to provide an intelligent solution to problems that are not within the parameters of.

This is apparent in the security features of these programs, which are as efficient as they were designed to be.

“AI wasn’t designed with security in mind,” Randolph declared. “You’ve got to have controls to make sure that data can’t egress out of that model, which is possible, both within traditional data and machine learning and in generative AI.”

The reason the insurance industry is slow to embrace new technology

Many people see an insurance business as being moving in a slow rate, however According to Randolph, this view is more widely accepted.

“I’ve worked in multiple fortune 50s in both retail and health insurance, and inside of the defense industry — they all move at a pretty slow pace,” said the man.

This is mostly due to the need to be more cautious when investing in technology which may not get through a consolidation period of three to five years.

“Most of these companies have 50- or 100-year time horizons, so you would expect them to be relatively risk averse,” Randolph declared.

“Personally, I wouldn’t be overly thrilled if I knew that my insurance company was being extremely risky with the funds that I was depositing there.”

However, in speaking with advisers and professionals in venture capital, Randolph found that many of the biggest players within the financial services industry, including insurance are moving quickly to implement certain AI-related capabilities.

“I think everyone sees it as a new version of cloud computing,” the CEO stated. “I was around when Amazon Web Services became a thing and witnessed the uptake there — I think we’re seeing a similar pattern here.”


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