IBM: Insurance industry bosses keen on AI. Customers, not so much
(2024/10/16)
- Reference: 1729089911
- News link: https://www.theregister.co.uk/2024/10/16/ibm_insurance_industry_bosses_keen/
- Source link:
An IBM study has found most insurance industry leaders believe generative AI is essential to keep pace with competitors. However, only a quarter of customers want anything to do with the technology.
[1]The study is based on a survey of 1,000 insurance c-suite executives and 4,700 insurance customers. CEOs in the survey were evenly decided on whether generative AI was a risk versus an opportunity although 77 percent who responded said generative AI was necessary to compete.
Customers were not so keen: just 26 percent said they trusted an AI to dispense accurate and reliable advice.
[2]
Unsurprisingly, IBM – which has an array of AI products that it would be delighted to sell to customers – reckons the solution includes implementing a strongly governed, ethical AI to deal with trust issues and "use AI to connect the underlying risk data and address long-standing insurer and financial service provider technical debt."
[3]
[4]
Or perhaps Big Blue could simply listen to customers, only 29 percent of whom are comfortable with generative AI agents providing service, according to IBM's figures.
Per the study, investments in generative AI are expected to surge by more than 300 percent between 2023 and 2025 as organizations move from technology pilots to implementation. IBM's rivals, including Microsoft, have bet big on such a move, although analysts and traders have hinted at [5]the AI bubble potentially popping in the not-too-distant future.
[6]
[7]Another study from Salesforce showed data and security worries were also holding back enterprises, with only 11 percent of surveyed CIOs saying the technology had been fully implemented.
[8]AI chatbot gets green light to hallucinate your investment portfolio
[9]Microsoft Bing Copilot accuses reporter of crimes he covered
[10]AI chatbots amplify creation of false memories, boffins reckon – or do they?
[11]From RAGs to riches: A practical guide to making your local AI chatbot smarter
Even when implemented, the pay-off from AI projects can be far [12]less than hoped for by overexcited executives. It all depends on how the technology is used. As an example, some large enterprises have taken a [13]step back from products such as Microsoft Copilot over security and governance concerns – not with Copilot itself, but thanks to a realization that access and permissions need to be configured correctly before allowing Copilot to crawl over an enterprise's data.
The findings of IBM's survey and the conclusions drawn indicate a worrying tone-deafness in the AI industry. Customers don't want to deal with generative AI agents. Rather than try to solve the problem with, er, more AI, it might instead be better to consider where generative AI is appropriate and where it is not. ®
Get our [14]Tech Resources
[1] https://newsroom.ibm.com/2024-10-16-new-ibm-study-insurance-leaders-agree-that-rapid-adoption-of-generative-ai-is-necessary-to-compete,-but-insurance-customers-express-reservations
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/aiml&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2Zw_jLDfmiQq7f-id6OBW9gAAAQw&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/aiml&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Zw_jLDfmiQq7f-id6OBW9gAAAQw&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/aiml&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Zw_jLDfmiQq7f-id6OBW9gAAAQw&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[5] https://www.theregister.com/2024/06/07/some_investors_bet_against_nvidia/
[6] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/aiml&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Zw_jLDfmiQq7f-id6OBW9gAAAQw&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[7] https://www.salesforce.com/uk/news/stories/cio-ai-trends/
[8] https://www.theregister.com/2024/09/25/ai_stock_picker/
[9] https://www.theregister.com/2024/08/26/microsoft_bing_copilot_ai_halluciation/
[10] https://www.theregister.com/2024/08/13/ai_chatbots_amplify_creation_of/
[11] https://www.theregister.com/2024/06/15/ai_rag_guide/
[12] https://www.theregister.com/2024/06/12/survey_ai_projects/
[13] https://www.theregister.com/2024/08/21/microsoft_ai_copilots/
[14] https://whitepapers.theregister.com/
[1]The study is based on a survey of 1,000 insurance c-suite executives and 4,700 insurance customers. CEOs in the survey were evenly decided on whether generative AI was a risk versus an opportunity although 77 percent who responded said generative AI was necessary to compete.
Customers were not so keen: just 26 percent said they trusted an AI to dispense accurate and reliable advice.
[2]
Unsurprisingly, IBM – which has an array of AI products that it would be delighted to sell to customers – reckons the solution includes implementing a strongly governed, ethical AI to deal with trust issues and "use AI to connect the underlying risk data and address long-standing insurer and financial service provider technical debt."
[3]
[4]
Or perhaps Big Blue could simply listen to customers, only 29 percent of whom are comfortable with generative AI agents providing service, according to IBM's figures.
Per the study, investments in generative AI are expected to surge by more than 300 percent between 2023 and 2025 as organizations move from technology pilots to implementation. IBM's rivals, including Microsoft, have bet big on such a move, although analysts and traders have hinted at [5]the AI bubble potentially popping in the not-too-distant future.
[6]
[7]Another study from Salesforce showed data and security worries were also holding back enterprises, with only 11 percent of surveyed CIOs saying the technology had been fully implemented.
[8]AI chatbot gets green light to hallucinate your investment portfolio
[9]Microsoft Bing Copilot accuses reporter of crimes he covered
[10]AI chatbots amplify creation of false memories, boffins reckon – or do they?
[11]From RAGs to riches: A practical guide to making your local AI chatbot smarter
Even when implemented, the pay-off from AI projects can be far [12]less than hoped for by overexcited executives. It all depends on how the technology is used. As an example, some large enterprises have taken a [13]step back from products such as Microsoft Copilot over security and governance concerns – not with Copilot itself, but thanks to a realization that access and permissions need to be configured correctly before allowing Copilot to crawl over an enterprise's data.
The findings of IBM's survey and the conclusions drawn indicate a worrying tone-deafness in the AI industry. Customers don't want to deal with generative AI agents. Rather than try to solve the problem with, er, more AI, it might instead be better to consider where generative AI is appropriate and where it is not. ®
Get our [14]Tech Resources
[1] https://newsroom.ibm.com/2024-10-16-new-ibm-study-insurance-leaders-agree-that-rapid-adoption-of-generative-ai-is-necessary-to-compete,-but-insurance-customers-express-reservations
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/aiml&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2Zw_jLDfmiQq7f-id6OBW9gAAAQw&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/aiml&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Zw_jLDfmiQq7f-id6OBW9gAAAQw&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/aiml&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Zw_jLDfmiQq7f-id6OBW9gAAAQw&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[5] https://www.theregister.com/2024/06/07/some_investors_bet_against_nvidia/
[6] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/aiml&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Zw_jLDfmiQq7f-id6OBW9gAAAQw&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[7] https://www.salesforce.com/uk/news/stories/cio-ai-trends/
[8] https://www.theregister.com/2024/09/25/ai_stock_picker/
[9] https://www.theregister.com/2024/08/26/microsoft_bing_copilot_ai_halluciation/
[10] https://www.theregister.com/2024/08/13/ai_chatbots_amplify_creation_of/
[11] https://www.theregister.com/2024/06/15/ai_rag_guide/
[12] https://www.theregister.com/2024/06/12/survey_ai_projects/
[13] https://www.theregister.com/2024/08/21/microsoft_ai_copilots/
[14] https://whitepapers.theregister.com/
Re: complete fail
alain williams
frustrated i told them not to bother as i would find an insurance company that could provide a service
The trouble is that your comment will prolly not be fed back to the C-suits who think that AI is a great way of saving money - but who do not realise that it is losing them business.
Generative AI making it up as it goes along.
Rocinante
Going on the lack of accuracy of ChatGPT, I would be very wary of using it. Made-up quotes from made-up people. This is understandable considering it uses the Web for source material.
"most insurance industry leaders"
Pascal Monett
So, a bunch of people who are completely disconnected with reality believe in AI ?
What a surprise . . .
VoxDei
"a worrying tone-deafness in the AI industry."
The AI industry isn't tone deaf. It's working as hard as it can to extract as much money as it can from its gullible marks before they realise they've been had by the snake oil salesmen.
The AI industry's core demographic isn't the general public, it's technically illiterate C-suite execs. They're bang on tone for that audience.
complete fail
after trying to retrieve a quote i had submitted online but at the last page told call this number i had the misfortune to end up with one of these AI bots, after 4 calls going round in circles and it directing me to incorrect options, or unable to understand the numbers i was providing i ended up yelling at it to let me talk to a human
it then dumped me in the general customer services queue who after i told what i needed dumped me back to the queue with the AI bot, after about 30 minutes of going round in circles i eventually ended up with a human in the right department
only for them to say they couldn't locate the saved quote i had completed online
frustrated i told them not to bother as i would find an insurance company that could provide a service