The Impact of AI-Enabled Insurance Tools on Risk Management

In 2021, analysts with McKinsey & Company listed artificial intelligence (AI) among five tech trends predicted to transform insurance over the next decade. Yet it is likely even the experts at McKinsey had no idea how far -- and how fast -- AI would mature.

On Nov. 30, 2022, just 14 months after the release of the McKinsey report, ChatGPT burst onto the scene. The powerful chatbot from OpenAI reached an astonishing one million users in its first five days.

In the weeks and months since, ChatGPT has sparked endless debate across all industries and is challenging assumptions about what risk management might look like in the next decade.

Clearly, the era of highly sophisticated AI has arrived, and it will forever change the way all organizations operate. Its impact on insurance and risk management is likely to be deeply felt long before the 2020s have concluded.