Insurers plan to invest $5m in AI in 2024
Source: Middle East Insurance Review | May 2024
Most insurance IT decision-makers (69%) plan to invest from $500,000 to $5m in AI in 2024 according to a new study.
The 2024 Global AI Report - The Impact of AI on Business: Trends, Challenges and Opportunities from Rackspace Technology shows that many of these decision-makers have nearly doubled the AI spend in their budgets over the past year – the average projected investment this year per respondent was $2.5m.
The report shows that companies believe the benefits of AI are in areas of innovation (49%), sales (48%) and risk management (47%). The report said organisations are also struggling with two principal areas: security and talent gap. Respondents believe that the talent gap is leading to missed opportunities in those areas.
When using AI, 47% of insurers have credited it with substantial benefits including:
- 45% reported AI has increased in innovation and reduced risk
- 41% reported increased in sales
- 41% reported increased understanding of business and customers
- 39% credited AI with personalising marketing campaigns
AI is ushering in significant transformation across industries while reshaping the way businesses operate, interact with customers and compete in the marketplace. While the popularity of AI is reminiscent of past technological shifts, this transformation is characterised by its blistering pace, which far exceeds the historic timelines we have associated with other large industry shifts. M