Generative artificial intelligence (GenAI) will undoubtedly – and irrevocably – reshape the commercial insurance industry. For example, amongst many other advantages, GenAI opens the black box of artificial intelligence decisioning and gives the process a voice to explain its own logic. The result is unprecedented risk data clarity and reliability, as well as new confidence in policy process automation.     

I have experienced and personally led industry transitions like this before. Using AI and machine learning algorithms to analyze massive data sets opens new strategic possibilities and business opportunities.  

When I developed the AI program that became Salesforce Einstein, the first smart CRM able to identify business opportunities in complex and disparate data sets, adoption was slow at the beginning.  Soon, people began to understand the ‘why’ and recognize the distinct advantages, and advanced data-based business and marketing strategies soon became table stakes. As an advisor to the Israeli Prime Minister’s Office for biometric application, I also had a front-row seat to the gradual realization that AI could actually perform facial-recognition tasks statistically better and more consistent than officers.  

And with the recent advent of GenAI, these winds of change are being felt across multiple industries. It is vital for enterprises to have a strategy in place to react to this evolution, and board leadership needs to be prepared to lead that conversation. 

Even if you are not prepared to make a large-scale move to implement this new technology, you should understand how it’s being used and the potential benefits to your own process so you can develop a strategically-sound, measured response.  

In an excellent Forbes article, GenAI as a Business Strategy – What can Boards do About It?, Bharath Yadla emphasizes the need for enterprises to embrace AI and automation strategically, citing the potential of large language models (LLMs) as "digital brains" seamlessly integrating with human brains, processes, and systems to enhance business operations.

The author introduces the comprehensive SCORE-AI framework, comprising five crucial elements for boards to consider in adopting GenAI as part of their business strategy:

• Strategy: Enterprises must redefine their business strategy with GenAI, optimizing industry advantage, competitive landscape, revenue and growth models, customer experience, and talent capital.

• CxO Abilities: Evaluate and enhance the capabilities of CxOs (chief information officers, chief operating officers, etc.) to lead the organization in reimagining the potential of GenAI within their business.

• Operational Excellence: Stress the importance of operationalizing GenAI swiftly, testing and refining the strategy to align with market dynamics.

• Risk and Resilience: Balance risk and value creation associated with adopting GenAI and ensuring a resilient business approach.

• Ethics, Effectiveness, and Efficiencies: Monitor and moderate the ethical usage of AI, defining key performance indicators (KPIs) aligned with GenAI in the business model, and effectively steering business efficiencies and growth.

Board leadership needs to advance the internal understanding of GenAI and large language models (LLMs). They need to identify and support those within the carrier enterprise that can develop and execute performance-based strategies, and bring in outside consultants when the knowledge doesn’t exist internally.  

Boards should ask their CEOs, “What have you done for me lately?” Have the C-suite build a strategy for implementing GenAI and automating as much as possible, outlining the associated risks and rewards. The CEO should work with the CIO, who will need both inside and outside perspectives to build a solid recommendation.   

Pulling in outside consultants to foster a better understanding of available tech and potential operational enhancements is essential. Gathering input and identifying use cases will help demonstrate the greatest value and provide the most complete strategic outlook. CXOs should consult with industry leaders like McKinsey, Accenture, BCG, or Planck for a complete understanding of GenAI developments and applications.  

GenAI is here to stay, and it is vital to have an adoption plan in place as soon as possible to remain competitive. Ignoring the sea change of GenAI is not a viable option, but blind adoption of new tech can create noise and problems.  

Schedule time to meet with Planck and learn how to benefit from the GenAI revolution.