Artificial Intelligence

Navigating the AI Landscape: The Current State of the Industry

The Financial Services Sector is undergoing transformative growth and evolution driven by advancements in Artificial Intelligence (AI) and Generative AI (GenAI). The explosive growth of AI has shifted time, attention, and resources as companies work to make the most of the opportunities AI presents.

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AI — especially GenAI — holds profound transformative
potential for our industry

The LIMRA and LOMA AI Governance Group (AIGG) reports¹ that:

of carriers are experimenting with AI/GenAI at varying levels

of firms are piloting, planning to pilot, or implementing internal GenAI capabilities this year

The Age of AI Has Arrived

Insurance carriers are experimenting with AI use cases, with a focus on drawing value from first-generation use cases while developing enterprise AI strategies.

An EY survey of insurers² found:
prioritize use cases to transform a specific part of the value chain	focus on use cases that deliver near-term value	prioritize the long-term benefit

AI Governance & Centralization

The development of AI governance across the enterprise is imperative for successful implementation. To ensure AI success, a shared enterprise definition of AI risk and the incorporation of risk management into AI strategies is vital.

insurers have enhanced or are in the process of enhancing
policies around use of GenAI²

insurers have established a governance framework²

Fail Fast, Learn Faster

Carriers are advised to adopt a "fail fast" approach towards use cases that do not yield success.

Maximize value from AI investments by:
	Redirecting IT investments to fund AI initiatives through 2024
	Centralizing AI investments
	Developing benchmarks for AI funding

Regulatory & Cultural Changes

67% of insurance decision-makers say regulatory uncertainty is the top barrier to establishing a GenAI dedicated team.²

Companies are cautious... ...about utilizing automated decision making without human oversight and are focusing on:
	Safety
	Security
	Explainability
	Transparency
Companies should prepare for the future workforce in the “Age of AI” and create workforce strategies that can be adapted to AI advancements to ensure the company remains responsive to AI changes. Learn more about the Artificial Intelligence Governance Group. Find additional thought leadership on AI at www.LIMRA.com/AI. ¹Navigating the AI Landscape: Current State of the Industry; Executive Briefing, LIMRA ²How to Revolutionize the Insurance Value Chain with Generative AI, EY

Navigating the AI Landscape: The Current State of the Industry

AI — especially GenAI — holds profound transformative
potential for our industry

of carriers are experimenting with AI/GenAI at varying levels

of firms are piloting, planning to pilot, or implementing internal GenAI capabilities this year

prioritize use cases to transform a specific part of the value chain

focus on use cases that deliver
near-term value

prioritize the long-term benefit

insurers have enhanced or are in the process of enhancing
policies around use of GenAI²

insurers have established a governance framework²

Maximize value from AI investments by:

Companies are cautious...

¹Navigating the AI Landscape: Current State of the Industry; Executive Briefing, LIMRA

²How to Revolutionize the Insurance Value Chain with Generative AI, EY

Navigating the AI Landscape: The Current State of the Industry

AI — especially GenAI — holds profound transformativepotential for our industry

of carriers are experimenting with AI/GenAI at varying levels

of firms are piloting, planning to pilot, or implementing internal GenAI capabilities this year

prioritize use cases to transform a specific part of the value chain

focus on use cases that deliver near-term value

prioritize the long-term benefit

insurers have enhanced or are in the process of enhancing policies around use of GenAI2

insurers have established a governance framework2

Maximize value from AI investments by:

Companies are cautious...

1Navigating the AI Landscape: Current State of the Industry; Executive Briefing, LIMRA

2How to Revolutionize the Insurance Value Chain with Generative AI, EY

AI — especially GenAI — holds profound transformative
potential for our industry

focus on use cases that deliver
near-term value

insurers have enhanced or are in the process of enhancing
policies around use of GenAI²

insurers have established a governance framework²

¹Navigating the AI Landscape: Current State of the Industry; Executive Briefing, LIMRA

²How to Revolutionize the Insurance Value Chain with Generative AI, EY