Insights
- Insurance sector’s spending on generative AI is set to increase from just $70 million in 2023 to $320 million in 2024.
- Only 15% of insurance companies have no generative AI initiatives. 16% have use cases that generate business value.
- Insurance companies are most optimistic about generative AI’s impact on user experience.
- 60% of insurance companies identified data privacy and usability as the leading challenges in adopting generative AI.
- Insurance is more positive (75%) about workforce generative AI readiness than the overall sample average (67%).
- CIOs are the most popular sponsor of generative AI in the insurance industry. The also lead on policy making.
Through this study, we aimed to uncover how companies use generative AI, how much they spend on it, how it’s being rolled out, and where it makes an impact. We looked at 3,000 companies across 12 industries:
- Automotive
- Consumer packaged goods
- Energy, mining, and utilities
- Financial services
- Healthcare
- High tech
- Insurance
- Life sciences
- Logistics and supply chain
- Manufacturing
- Retail and hospitality
- Telecommunications
Many companies told us they are already spending significant sums of money — and are set to spend more this year. However, this pattern isn’t the same across sectors. In this data book, we highlight how the insurance sector compares with the rest of the pack All data used in this data book are from Generative AI Radar North America, Europe, and APAC.
Generative AI spending
Generative AI spending to rise the fastest in insurance
Generative AI spending in insurance to surge 357% in 2024 — Insurance sector’s spending on generative AI is set to increase from just $70 million in 2023 to $320 million in 2024.
Insurance generative AI spending
Expected generative AI spending growth in 2024 by industry
Generative AI adoption
37% of insurance companies are implementing or have implemented generative AI solutions
Most insurance companies have started their generative AI journey — Only 15% of insurance companies have no generative AI initiatives. 16% have use cases that generate business value.
Nearly one-third of the insurance industry is experimenting with generative AI — 32% of insurance companies are experimenting with generative AI, in line with the overall sample percentage of 31%.
Generative AI adoption by proportion of respondents
User experience drives generative AI optimism for insurance
Focus on users underlines difference between this consumer-facing industry and others
Insurance companies are more optimistic about user experience — 44% of insurance companies report that generative AI will have the biggest positive impact on user experience and personalization — much higher than the overall trend (31%).
However, insurance companies are less confident about its use for product development and design.
Where companies expect generative AI to have the most positive impact
Insurance companies are upbeat about generative AI impact
Most respondents expect a positive impact on business areas
Insurance’s optimism is higher than the overall trend — The overall trend is positive about the impact of generative AI across business areas, including revenue, business models, talent, reputation, profit, and cost efficiency. Insurance respondents shared a similar but higher positive outlook (85%).
Expected generative AI impact on business areas by proportion of respondents
Obstacles to generative AI adoption
Insurance companies rank data privacy and data usability as the top barriers to generative AI adoption
Data privacy and data usability are the top concerns — 60% of insurance companies identified data privacy and usability as the leading challenges in adopting generative AI.
Challenges in implementing generative AI
Confidence in the ability to manage and control generative AI systems
Insurance’s confidence about generative AI management beats the overall trend
Insurance companies are confident in their generative AI management — 83% of insurance companies are positive about their ability to manage generative AI, with only 1% expressing negative sentiment.
Confidence in the ability to manage generative AI systems by proportion of respondents
Workforce generative AI readiness
Insurance more positive about their readiness for generative AI
Insurance industry’s confidence in workforce AI readiness is higher than the overall trend — Insurance is more positive (75%) about workforce generative AI readiness than the overall sample average (67%).
Sentiment on workforce readiness to adopt generative AI by proportion of respondents
Primary sponsor of generative AI initiatives
Chief information officers are the main sponsors of generative AI at one-third of insurance firms
CIOs sponsor generative AI in the insurance industry more than the overall trend — 34% of insurance companies report that chief information officers (CIOs) are primarily sponsors of generative AI.
Primary sponsor of generative AI initiatives by proportion of respondents
Who leads generative AI policy making?
Insurance chief information officers are more likely to lead generative AI governance
Insurance CIOs govern generative AI most often — 34% of insurance CIOs are responsible for AI regulations and policies in their companies, compared with 25% in the overall trend.
Primary generative AI policy maker by proportion of respondents
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