AI adoption advances, but foundational barriers remain, this is the overwhelming finding of a survey by McKinsey&Company.
The core reasons for the barriers are that there is still a lack of digitization and this means lack of data.
There are other reasons for lack of progress and these include a) lack of strategy for AI; b) lack of talent with appropriate skill set; c) Functional silos; d) lack of technological infrastructure. All these reasons are ahead of lack of data. But the fact is that companies like TonkaBI can help with all the above but if there is no data then its harder for the company to progress.
The organizations that have made the most progress in digitizing core business processes are also on the leading edge of AI adoption. We have written on this before. This is the most relevant issue. The companies that are on a path now are most likely to survive and take advantage of the fast-paced adoption of AI. The case study shows how relevent this is and how quickly a companies fortunes can change.
The most digitized organizations have also deployed AI in more functions than other companies. These companies are investing much more in AI. They are leveraging their previous investments in digitization and now have the ability to move quickly into AI. These companies will reap more benefit and have the advantage of price strategy and service strategy as the benefits of AI take hold.
Talent too is one of the biggest challenges to making progress with AI, companies like TonkaBI are here to help fill the gap. Working with companies with a mix of internal and external resources is the norm. The other barrier is who owns the IP. The more advanced companies want to own the IP and so building internally seems obvious. AI is replacing human capital and those protections that businesses have held close for years.
TonkaBI recognises this issue and works with clients to overcome this barrier. Our teams are highly skilled in insurance AI capabilities. Finding teams with relevant industry knowledge and the right technical skills is hard. TonkaBI is here for the insurance sector and working hard to develop and share its IP with its clients though licencing and contracts.
The main finding as said is that digitization and certain foundational practices are critical to creating value from AI at scale. Becoming and Augmented Insurance company is the path to follow. Below are some pointers that companies can take to capitalize on AI’s potential:
- Make progress on your digital journey. Digitization is a prerequisite and critical enabler for deriving value from AI. More than anything having the relevant data is key. This can be a transformation-level change for many companies. It can be seen as life or death. There are already companies ready to pounce on your business through AI. Without a strong digital backbone, a company’s AI systems will lack the training data necessary to build better models and the ability to transform superior AI insights into behavioral changes at scale.
- Scale AI’s impact across the enterprise. Few companies have embedded AI into standard operating processes in multiple business units or functions. The way to start is a pilot, trying out the use of AI – this can be a little as 8 weeks effort. Start with a simple operation and then move on. Achieving results at scale requires not only the diffusion of these capabilities across the enterprise but also a real understanding and commitment on the part of leaders to drive large-scale change, as well as a focus on change management rather than on technology alone. AI is not a threat to you, it is a threat to the people and companies who are not on the path. There is little doubt that AI will take over certain job, but it will also create more jobs. The BIG thing is that there will be CHANGE.
- Put key enablers in place. While the adoption of AI is happening fast, organizations tend to lack many of the foundational enablers required to derive value from AI at scale. These enablers include top-management sponsorship, development of an enterprise-wide portfolio view of AI opportunities, action to close talent gaps, and the implementation of a sophisticated data strategy—all of which require more strategic thinking around AI programs and agendas. Business and technology leaders must work quickly to establish key AI enablers. Otherwise, they risk missing out on the current—and future—AI opportunity. Missing out means your business will be forced to change at some point.
Remember TonkaBI is the expert in Innovative Data Technology, especially for the Insurance Industry! We understand what challenges insurance companies like yours face on a daily basis, and we’ll be with you every step of the way, working with you to make this process as effective and as efficient as possible. TonkaBI is a living breathing organism, in all aspects, and if something needs to be adjusted, reorganized or rebuilt, this is something TonkaBI knows how to do this, do it right and do it quickly.
If you get a chance take a look at our website, also our blog (which you are reading now!!). Please feel free to contact us to set up a call and/or demonstration of TonkaBI, our email address is email@example.com.
tags #insurance #claims #artificalintelligence #AI #machinelearning