A recent study by J.D. Power shows that insurance customers have mixed feelings about the use of Artificial Intelligence (AI). They are open to AI, but have concerns about its use in the insurance sector.
AI has been gradually infiltrating the insurance industry, bringing numerous benefits. Notably, its ability to swiftly and accurately analyse large data sets leads to efficient claims processing and bespoke insurance products. Additionally, AI allows insurance companies to automate mundane tasks, thereby boosting operational efficiency.
However, the study reveals that customers are not fully on board. They recognise AI’s potential benefits but voice concerns. These primarily revolve around the use of AI by insurance companies and potential implications for their personal data.
Customer Concerns and Attitudes
Despite the potential of AI, insurance customers seek reassurances. They worry about privacy implications and the security of their personal data, as AI systems require access to substantial data to function efficiently.
The study also highlights customers’ scepticism about AI’s ability to mimic the human touch in customer service. Many customers still favour the personalised interaction they get from human representatives. AI, inherently, lacks this empathy and understanding.
Transparency of AI systems is another sticking point. Customers want more clarity on how these systems operate and how insurance decisions are made. The ‘black box’ nature of some AI systems, where decision-making is opaque, is a significant concern for customers.
In conclusion, insurance customers are not flatly refusing AI use, but they are proceeding with caution. They see potential benefits but also have valid concerns about privacy, security, and transparency. It’s clear that insurance companies need to address these issues to gain customer trust and fully harness AI’s potential.
