Artificial intelligence is expected to lead digital transformation in insurance, with the market for AI platforms expected to reach £2.5bn by 2024, which would represent a CAGR of 23% since 2019. This is the forecast from GlobalData, whose latest analysis points to a growing understanding of the benefits offered by AI platforms.
Sophia Patel, thematic analyst at GlobalData, said: “No longer limited to basic conversational platforms for customer queries, applications for AI in insurance now span the sector’s value chain - from product development and risk profiling to claims handling. As more legacy insurers inevitably move to the cloud, AI platforms, which are more compatible with these operating systems, are certain to see greater traction.
“Nonetheless, recent cases where AI has contributed to discrimination and bias has reduced trust in the technology. As insurance companies increasingly employ AI to inform decision-making processes, explainable AI practices will be vital to maintaining consumer trust. Algorithmic transparency measures will need to be integrated into the early stages of AI deployment.”
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