Insurance Industry Accelerates AI Adoption with Promising Returns, New Research Shows

The insurance industry is witnessing a significant shift towards artificial intelligence (AI) adoption, with over half of the firms planning to implement AI solutions within the next 12 to 18 months, according to a new research report by Digital Insurance. Sponsored by Salesforce, the report, titled 'The Cost of AI: The AI Revolution Gathers Steam', provides an in-depth look at how AI is transitioning from pilot projects to a core component of enterprise strategy in the insurance sector.

Findings indicate that companies aggressively implementing AI are already seeing improvements in efficiency and are beginning to reap the benefits of their investments. Janet King, SVP of Content Strategy and Research at Arizent, Digital Insurance's parent company, notes that the most advanced companies are likely to maintain their leading positions due to the positive returns they are experiencing from early AI adoption.

However, as AI deployments scale, the associated costs are also rising, presenting industry professionals with challenging decisions regarding modernization, budgeting, and prioritization. The research sheds light on the areas where companies are finding the most value from their AI investments, as well as the obstacles preventing broader success. Generative AI, in particular, is reshaping discussions around customer experience, offering new avenues for engagement and service delivery.

Looking ahead, nearly all organizations anticipate an increase in AI spending over the next year, with only a few expecting levels to remain stable or decrease. This trend underscores the growing importance of AI in maintaining competitive advantage, suggesting that firms lagging in adoption may need to accelerate their strategies to avoid falling further behind.

For those interested in exploring the full findings of the report, more information is available at https://www.americanbanker.com/payments/news/embedded-payments-demand-comes-from-health-care-travel.