’AI isn’t a Terminator-esque spectre rising to do hard-working brokers out of a job,’ says head
National brokers are adopting artificial intelligence (AI) initiatives at a much higher rate than regional and provincial brokers.
That was according to a study from insurance software house Open GI, which showed that 45% of national brokers had adopted the technology compared to 9% of regional brokers.
The data also revealed notable differences in priorities and opinions on AI between national and regional brokers.
For example, 50% of national brokers said organisations that don’t use AI will be left behind, compared to just 25% of regional brokers and 21% of provincial brokers.
And only 5% of regional and provincial brokers rated AI adoption as a core business imperative in the next 12 months, compared to 25% of national brokers.
Peter Hunter, head of research and development at Open GI, said: ”Cyber security is something brokers are absolutely right to be thinking about in the context of AI adoption.
”Introducing AI often means processing client data in new ways and potentially creating new vulnerabilities, whether in the data pipelines or the algorithms themselves. But it shouldn’t act as a deterrent to implementation.”
Lacking maturity
Meanwhile, despite their greater appetite for adoption, only 2% of national brokers said their AI strategy was currently “mature and complete”.
Read: TechTalk – Is the cyber insurance world prepared for quantum computing?
Read: Over one-third of London market firms use AI, but concerns hinder adoption
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Hunter said that ”there is huge potential for brokers” who get their strategies right “to use it as a tool to write more and better business”.
“It isn’t a Terminator-esque spectre rising to do hard-working brokers out of a job,” he added.
“Instead, it offers a series of tools to help brokers with content creation, automation of repetitive tasks, analysis and tools to help policyholders find information quickly. It presents a huge opportunity, if used correctly.”
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