Technology and interactivity between computer networks continues to advance, and now experts believe that the development of artificial intelligence (AI) could help to revolutionize commercial insurance.
Simply put, AI is the ability for computer systems and programs to simulate intelligent behaviour, such as predictive analytics, autonomous vehicles and real-time mapping. Additionally, computer scientists are beginning to develop new programs that can process data and "learn" over time in order to complete tasks that would normally require a human.
The following are ways AI may someday help lower insurance premiums or give risk management insights:
- Using data from wearable fitness trackers and smartwatches to warn about imminent health risks
- Tracking inventory and supply chains in real time to increase efficiency
- Analyzing traffic and driving patterns to map out efficient and safe routes
Experts believe that AI will have a large impact on insurance, as advanced programs will be able to look at a larger collection of data simultaneously in order to get a more accurate prediction of risk exposures and loss histories. What's more, AI could eventually help streamline the claims process — automating it as much as possible and reducing human error.
However, some critics believe that processing personal data or handing over too much control to computer systems could expose businesses to increased exposures. For example, if an autonomous vehicle malfunctions and causes an accident, it's difficult to determine who — or what computer system — is at fault. So, while AI could positively impact the customer experience, it is not without risk.