AI Agents for Insurance

38% profit increases from artificial intelligence within the next 17 years–claims included in Allianz’s recent paper, The Rise of Artificial Intelligence: Future Outlook & Emerging Risks. This rosy outlook is from a report that focuses on the broader context of intelligent tools beyond insurance AI. These numbers rely on a dubious assumption of continued acceleration of AI adoption across all industries. As with all change, multiple factors will drive or hinder the AI’s progress, including an array of ethical considerations related to handing over control to the emerging, strong AI agents.

AI investment and ethical boundaries

Adoption of artificial intelligence technologies throughout industry is no longer a question of if but when and how. The speed of this transformation will be determined by the level of financial commitment businesses make in to AI research and the launch of new intelligent technology tools. AI applications are not as new as many believe. The first intelligent AI agent was launched in 1981 by Digital Equipment Corporation. That embryonic virtual agent developed computer equipment solutions for customer orders. Small forays into intelligent agents like DEC’s took off slowly but now have mushroomed to include hundreds of uses from customer facing solutions to advanced data analytics and machine learning applications.

Use Case: AI Agents for Insurance

AI agents for insurance are able to improve every transaction process, anticipate customer needs more effectively, accelerate processing of claims and policy issues, and better predict risk including new, unforeseen risks. Artificial intelligence increases productivity by enabling AI agents to perform tasks that are repetitive, highly complex or heavily regulated. Round the clock, virtual agent software works, scaling up as needed and never straying from vetted processes. And with the power of machine learning applied to vast data customer interactions paired with marketing and demographic data, AI insurance agents can tailor communications and campaigns directly to the individual consumer, assisting them with timely and relevant information, giving explanations and illustrations that guide them to understand the value of products from their own context.

AI’s Societal Impact Brings Insurers Opportunity

Improvements that AI offers to insurer operations is well accepted as the first phase of AI application for carriers. Emerging in the coming years is a proliferation of new paradigms and risks that will need shifting and coverage. The chance to transition from insuring risk to becoming a risk avoidance consulting firm gives those businesses willing to invest in AI, and experienced with intelligent systems, a leg up in the coming marketplace.

Innovative insurance products will be targeted to cover businesses and consumers that take into account both human failures as well as those of the new AI automation. Automated machines themselves will need coverages under a framework akin the body of product liability law. Further still, widespread automation will introduce vulnerabilities due to inter-machine communications, cyber threats and regulatory risk, especially concerning data privacy.

AI Goal Alignment Challenges Enterprises

These intelligent technologies are capable of solving complex problems better than even the most highly-skilled humans but their use is not without risks. As society gains experience with AI, we will have to be vigilant for potential negative impacts. Even tech behemoths like Microsoft and Facebook are not immune from unintended consequences of AI tools. Microsoft’s Tay bot was banned from Twitter within one day after it “learned” from the twitter community how to behave in an abusive way, spouting racist and misogynistic tweets. Stranger still, Facebook deployed twin AI agents that soon developed their own exclusive language. Virtual agents based on artificial intelligence will optimize for whatever goals they are given. To direct intelligent technology away from unwanted behaviors and towards a safe, beneficial direction, we should give AI agents goals that truly align with a world we actually want according to AI pioneer Stuart Russell.

To see how Elafris Virtual Insurance Agents can help your company, speak with us to schedule a free online demo.

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