Generative AI - Mitigating Risk To Realize Success in Life Insurance
When we think about things that exist today that could be brought together and generate new products and services, we start to see how AI could really alter the future. As an example, in the not-too-distant future, films could be made exclusively without human actors and look not animated, but as real as movies do today, hence the actors strike. Artificial intelligence is revolutionizing the way we live and work, and it will profoundly reshape our world by transforming jobs and fostering new industries. From this point forward, it will have a transformative, disruptive impact on insurance operations and technology.
The launch of Open AI’s ChatGPT opened the world’s eyes to the extensive possibilities of generative AI. Many insurers have already implemented some form of AI in their organizations. Those who did may have introduced AI policy and governance guidelines as well. However, the introduction of generative AI and other LLMs adds several new elements of risk to the AI mix that insurers need to assess policy for if they haven’t already.
As you will see in this report, if you plan on waiting for regulators for guidance, in many cases you may be waiting well beyond 2023. For insurers who are implementing generative AI (or having third party platforms and service providers implementing it), understanding the risk and having an appropriate mitigation strategy will be a critical step toward the future of all things AI.
In this, our second in Celent’s series of generative AI and other LLM reports, we look at the growth in the launch of large language models like ChatGPT; regulatory reaction, opportunity, and primary risk areas of generative AI; and what insurers should consider to mitigate risk for a successful generative AI journey.