The capability of generative Artificial Intelligence (AI) applications like ChatGPT suggests potential applications to many sectors including general insurance and its value chain. In this ICNZ Scholarship winning essay, AA Insurance’s Toby Kelly discusses.

Introduction

Generative Artificial Intelligence (AI) applications have taken the world by storm in 2023. ChatGPT-3 from OpenAI reached 100 million active users in January, just two months after launch —making it the fastest growing consumer application in history. [1]

Generative AI features have quickly followed from leading technology giants, with Google releasing a similar GP-esque tool just 6 weeks later. [2] Private investment in AI technology start-ups has followed the hype, increasing 400 per cent compared to the first half of 2022.[3]

The predicted impact on business is huge, with leading consultancy firm McKinsey describing a new paradigm for work that will touch every industry and role, potentially automating up to 70 per cent of work activities and adding $4.6T USD annually to the global economy from productivity gains.[4]

For general insurers specifically, this essay will argue that the benefits of adopting generative AI across the value chain will outweigh the risks. The technology has the potential for wide-ranging applications that promise to increase productivity, decrease costs through automation and improve decision-making capability.

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