Chapter 1:
An Introduction to Artificial Intelligence
The 2020s have seen Artificial Intelligence (AI) in full force.
But what is AI?
Artificial Intelligence is the ability of a machine, computer, or software platform to mimic human logic and thought patterns. It can perform tasks independently, and both initiate and automate workflows. When trained on real-time data, AI can quickly produce meaningful insights. In the words of innovation giant IBM, Artificial Intelligence “leverages computers, data and sometimes machines to mimic the problem-solving and decision-making capabilities of the human mind.”[1]
Computer programmers build AI models using algorithms that compute massive quantities of data. The most advanced AI models can generate complex insights about this data—and even make autonomous decisions based on its conclusions. In processing more information than any human alone ever could, AI technology revolutionizes user experiences by reducing the burden of repetitive, manual, and time-consuming tasks.
For businesses across all sectors, the value of AI lies in its ability to automate and optimize workflows—without constant human involvement—to drive data-driven decision-making at all levels.
Before we dive deeper into AI—both its history and its place in today’s insurance world—let’s first explore some general examples of how businesses are currently using AI.
For instance, organizations of all kinds employ chatbots that initiate and facilitate standard customer conversations on their websites. Agricultural and insurance companies also use AI to analyze weather patterns to predict future forecasts. Financial organizations, for example, use AI to glean customer insights to determine investor risk tolerance. AI-powered tools similarly allow marketing teams to target digital ads to specific web-based audiences and measure digital content performance across different platforms.