Insurers Adopt AI for Data Ingestion, but Lack of Strategy May Hinder Progress, Warns Hyperexponential

A recent study by insurtech provider hyperexponential revealed that over 90% of insurers in the UK and US are using artificial intelligence (AI) for data ingestion, with 95% of UK insurers and 89% of US insurers leveraging this technology. Despite this high adoption rate, many firms lack effective strategies to fully harness AI’s potential. A significant challenge noted is the absence of dedicated AI leadership; 41% of UK respondents reported no designated AI lead, leading to fragmented approaches. Governance is also underdeveloped, with only 17% of UK respondents indicating mature practices compared to 45% in the US. Additionally, there is a rise in “shadow AI” usage in the US, where over 90% of respondents are using unsanctioned AI tools, indicating a disconnect between innovation and formal governance. Hyperexponential’s CEO emphasized the necessity for a cohesive strategy that integrates AI into company culture rather than being seen as departmental experiments.

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