target audience: TECH BUYER Publication date: Feb 2024 - Document type: IDC PlanScape - Doc Document number: # US50798123
IDC PlanScape: Deriving Tangible Value From Generative AI for Insurers
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Abstract
This IDC PlanScape serves as a guide for technology buyers in the insurance industry, highlighting crucial considerations for leveraging value through generative artificial intelligence. The emergence of GenAI signals a transformative era in the realm of artificial intelligence, exerting a profound influence on insurers and reshaping the industry's operational, organizational, and business landscape. In a departure from previous emerging technologies industry reactions, both C-suite and IT leaders are thoroughly captivated by the capabilities of technology in showcasing the potential for revolutionary leaps. The adoption of this technology has become a shared mandate, but due to distinct vocabularies from the two advocates, it is crucial to articulate the potential of GenAI not solely based on its features, but rather on the business outcomes it can align with. This underscores the importance of exploring use cases, conceived as discrete IT programs intricately linked to specific business outcomes, making it a pivotal aspect of the process. This document serves as a starting point for insurance professionals interested in initiating exploratory sessions within their organizations. It offers an initial overview of the expansive landscape of GenAI use cases and presents critical frameworks that can aid in narrowing down the universe of opportunities. It further identifies foundational activities essential for investing in and utilizing GenAI, guiding readers through the prioritization of GenAI use cases for successful integration. Lastly, the report identifies key stakeholders crucial for realizing the immediate and long-term value of GenAI over a five-year horizon.
"In the upcoming months, the insurance industry is at a pivotal juncture in its journey to explore and adopt generative AI. Despite the historical risk aversion inherent in insurers, there is a need for a leap of faith. However, it is essential for them to precisely articulate the challenges they intend to address, assess the suitability of generative AI as a solution, and carefully select vendors with capabilities aligned with their specific use cases. The key requirements include showcasing scalability, implementing robust risk management practices, and incorporating governance safeguards. These measures are critical to responsibly harness the transformative potential of generative AI and unlock extensive opportunities within the industry," said Davide Palanza, research manager, IDC Financial Insights.