The insurance industry is facing a challenge as many consumers remain hesitant about using artificial intelligence (AI), despite reports of positive experiences with the technology. A recent survey from GlobalData highlighted this disconnect, revealing that while AI is viewed as a tool that can improve efficiency, trust issues still linger, especially concerning data privacy and how decisions are made.
In the survey, which included over 5,500 participants from 11 countries, nearly 74% of respondents agreed that AI could reduce the time it takes to connect with customer service. Additionally, around 71.5% believed AI could enhance operational performance, and a similar number thought it could outperform humans in detecting patterns. Among users of AI tools in insurance, satisfaction rates were notably high, with 74.5% of those using chatbots expressing satisfaction with their interactions.
However, despite these benefits, many consumers are cautious about AI’s broader role in insurance. Beatriz Benito, a lead insurance analyst at GlobalData, pointed out that while views on AI are generally positive, concerns about fairness and reliability hinder its widespread acceptance. Many consumers feel that the technology is not yet advanced enough for large-scale adoption, which affects their trust.
This sentiment is echoed by a separate study from NTT Data, which found a gap between the rapid adoption of AI and the readiness of company leadership and workforce structures to support it. More than 80% of executives surveyed indicated that their organizations’ governance systems have not kept pace with AI advancements.
To build consumer confidence, Benito emphasized the need for transparency in AI decision-making and clear communication regarding data usage. She noted that some consumers worry about bias in AI tools, especially when it comes to negative claim outcomes. Others simply prefer human interaction.
While AI is likely to play a significant role in the industry’s digital strategy, Benito stressed that human interaction remains crucial, particularly in situations requiring empathy and judgment. AI can offer 24/7 customer support and streamline claims processing, which consumers generally appreciate. However, the human touch is still important for building trust and satisfaction.
In summary, while AI holds promise for improving the insurance sector, addressing consumer concerns about transparency and reliability will be essential for its successful integration. Better communication about AI’s capabilities and limitations may help increase acceptance among consumers.