THE CURRENT STATE OF PLATFORM AND SERVICE PROVIDERS
GenAI has gained an amazing amount of attention and investment in just two years, and in 2025 agentic AI will be fueling additional attention and excitement. Seemingly every industry is rushing to embrace GenAI technology. Companies with GPT models, such as OpenAI, Amazon, Google, Microsoft, META, Anthropic, and others, continue to invest heavily in developing and improving their respective large language models (LLMs). These models have the potential to revolutionize various industries and are dramatically influencing the way insurers do business.
Celent anticipates the speed of technology advancements in the field of GenAI (e.g., agentic AI, faster/more efficient compute such as DeepSeek and Alibaba’s new QwQ-32B, etc.), competitive pressures, and the maturation of GenAI applications through increasing FI comfort level and regulatory clarity will continue to put insurers under pressure for continued investment. To this point, leveraging their third party relationships will be critical.
Platform and service providers hear the call, with more than half stating that over 20% of their 2025 capital investments will be focused on AI/GenAI capabilities. Investments include funding research and development efforts, acquiring talent in the field of artificial intelligence and natural language processing, and building infrastructure to support the training and deployment of GPT models. Additionally, companies are also investing in AI-based tools for modernization, data, and system conversion, along with the ethical and responsible use of AI models, by addressing concerns related to bias, privacy, regulations, and security.
Current LLMs have such a level of sophistication and are so accessible that the potential to increase the speed at which vendors and service providers can bring new solutions to clients is staggering. Insurers and other FIs are continually pressed to optimize processes through automation to improve such things as the customer experience, so leveraging third party relationships to be able to quickly get what they need is invaluable. The good news, based on our findings in this report, is that the platform and service providers are rapidly adapting GenAI in their platforms and services, adding on a plethora of new capabilities in a very condensed timeframe
“The global market size in the ‘Generative AI’ segment of the artificial intelligence market was forecast to continuously increase between 2024 and 2030 by a total of 320 billion US dollars (+887.41 percent)” (Statista—December 2024)
