Capco Journal 54AI and Digital Transformation of Insurance Markets.pdf (251.07 kB)
Download fileArtificial intelligence and digital transformation of insurance markets
journal contribution
posted on 2022-02-07, 10:22 authored by Christopher P. HollandChristopher P. Holland, Anil KavuriAnil KavuriArtificial intelligence (AI) is recognized as a strategically important technology because it has the potential to exploit human-like intelligence at machine scale and speed. However, the hype surrounding its business use masks the AI phenomenon and makes it difficult to analyze and evaluate in a systematic manner. Current approaches to defining AI tend to focus on its technical aspects and neglect the business, ethical, legal, and regulatory context. To remedy this deficiency, an AI systems approach is taken that defines AI within a broader systems framework. This is important because it provides a richer set of concepts that relate AI technology to business processes, business models, ethical considerations, and the legal and regulatory environment. A new framework of digital transformation is proposed, which is based on a synthesis of a new AI systems definition and business model concepts. The digital transformation model is illustrated with two global leaders in insurance markets, Ping An and Tesla insurance. In both cases, a similar causal model of digital transformation, continuous innovation, and rapid growth is identified that exploits the AI digital flywheel effect. The managerial and regulatory implications of the case study analyses and conclusions are described, and future research opportunities are outlined.
Funding
Technology Driven Change and Next Generation Insurance Value Chains (TECHNGI)
Economic and Social Research Council
Find out more...History
School
- Business and Economics
Department
- Business
Published in
Journal of Financial TransformationVolume
54Pages
104 - 115Publisher
Capco InstituteVersion
- VoR (Version of Record)
Rights holder
© The Capital Markets Company (UK) LimitedPublisher statement
Reproduced with the permission of the publisher.Publication date
2021-11-01Copyright date
2021Publisher version
Language
- en