When asked about the benefits it could offer insurance companies, ChatGPT was able to use its “knowledge” (based on 175 billion data parameters) and communication skills to assist customers with their insurance questions and help insurers stay on top of emerging trends and customer needs.
Man versus machine: Dr. Artur Niemczewski will be live sparring with ChatGPT covering AI ethics in insurance #InsuranceInsights2023 pic.twitter.com/jSxlxEPN0l
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The AI language processing tool has sparked a heated debate about its impact on the digital world, despite gaining popularity in various industries such as healthcare and education.
But executives at insurtech companies, many of which are using AI to transform claims, underwriting, sales, fraud detection and more, are optimistic about the doors that generative AI could open.
The combination of AI and a conversational interface could have transformative power for insurance, according to one CEO.
“When you can ask a computer in natural language to solve a problem for you, and it has a high probability of doing what you ask it to do, that’s a game changer,” said Amrit Santhirasenan, co-founder and CEO of hyperexponential.
“Besides, if you have AI models that have the sophistication and free-form ability to intelligently interpret, that will also have tremendous leverage. We’ll see how practitioners who adopt these technologies really step up.”
What are the pros and cons of ChatGPT for insurance?
According to experts, at the current stage, it is unlikely that generative AI will completely replace underwriters, claims handlers or customer service representatives.
ChatGPT itself has a considerable list of pitfalls: it fails to capture context or the nuances in human communication, such as: B. sarcasm; it is limited in its ability to accomplish multiple tasks; and does not have sufficient expertise to process complex or technical documents such as B. Formulations of guidelines to draft.
It may also have biases or biases based on the data it was trained on, which opens up a box of ethical questions for insurance companies.
The value of generative AI lies in its potential to automate non-core but essential tasks.
“If someone could write the right prompts to an AI instead of manually formatting a spreadsheet, they could do it in a hundredth or even a millionth of the time,” Santhirasenan said.
According to Roi Amir, CEO of Sprout.ai, insurance companies could use the underlying technology to fuel their own innovations.
Sprout.ai trained its own AI to process insurance claims data and boasts that its claims automation platform can process most claims in minutes. Amir said other companies will try to use generalized AI for similarly specific applications.
“If you look at a lot [AI] Today the models are designed to be very specific to a problem,” he told Insurance Business. “ChatGPT is a great generalized model. I think we’ll see many companies use it as their base model, adding layers of intelligence and specificity for their individual domains.
“It’s going to jump-start a lot of things because it allows you to start from a much better level of abstraction. Smart companies will use this to solve very, very specific problems.”
Santhirasenan agreed: “If we take these sophisticated AI models and specialize them, we can create ‘supercharged’ versions of AI applications in different sectors [of insurance].”
However, it could take time for some specialty and trading lines to see the value of AI models due to a lack of data, the CEO acknowledged. But personal areas like home and auto insurance, where hundreds of millions of data points are already available for AI to use, could yield amazing results.
“We’re just getting started, but we’ve been able to see some incredible things from the spectrum of personal lines [of business] very quickly,” added Santhirasenan.
Lawrence Buckler, VP of Sales at Sprout.ai, pointed out that AI had existed as an invisible lever in insurance for many years before ChatGPT became popular.
“ChatGPT has made something tangible that has never been tangible for many people before. At Sprout, we’ve been using AI for several years to solve problems that most people don’t see,” he said.
“Now we have customers using AI to completely solve complex data problems very quickly, effectively, and consistently.”
While the technology’s evolution is still unclear, the overnight sensation surrounding generative AI is a boon for insurance companies, noted Bill Brower, VP of Industry Relations and Claims Solutions at Solera.
“The biggest [ChatGPT] What that means for the insurance industry is that it makes people more and more familiar with AI capabilities,” Brower said.
“The more we see consumers using AI in other areas of their lives, the more it will help insurers [using AI] in their applications.”
What are your thoughts on ChatGPT and its potential impact on insurance? Share them in the comments below.