The message was clear at our recent Insurance CIO Council Meeting at ITC Vegas: Artificial intelligence is no longer just a buzzword in insurance—it’s delivering real results. Over 90 CIOs and insurance technology leaders gathered to discuss how AI is transforming core insurance processes and creating measurable business value across the enterprise.
AI Successes and Challenges
Several success stories highlighted AI’s growing impact. One insurer’s implementation of a GenAI-enabled AI assistant for cyber submissions has accelerated initial risk assessment by 60%. Other carriers are following suit: One is leveraging CLARA Analytics for claims document insights, while a reinsurer is augmenting life and health underwriting with GenAI assistants. These implementations and others we heard about from our client and Council members span various AI technologies, from generative AI and computer vision to natural language processing and analytical AI.
However, the road to AI adoption isn’t without challenges. A Datos Insights survey revealed that, while insurers recognize AI’s importance, many are still preparing for full implementation. Only 9% of insurers considered themselves “well-prepared” in terms of strategic intent, with even fewer feeling fully ready for model training and management. In a snap poll during the conference, insurer IT leaders noted barriers to AI adoption around regulatory and compliance concerns, a shortage of AI and machine learning talent, and a lack data quality, availability, or access. Furthermore, once AI is implemented, a full 43% of respondents polled indicated they received less value than expected from their implementations, though the rest saw the expected value or even received greater value than expected.
Cybersecurity (and AI)
Cybersecurity emerged as another crucial theme, particularly as AI becomes more integrated into core operations. With ransomware claims up 38% from Q4 2022 to Q1 2023, and the global average cost of data breaches reaching a record $4.88 million in 2024, security cannot be an afterthought. Notably, organizations using security AI and automation extensively saved an average of $2.22 million compared to those that didn’t.
The Evolving Role of the CIO in an Evolving Industry
The event also highlighted the evolving role of insurance CIOs, who are increasingly becoming strategic influencers in driving technological innovation and partnerships. Success in 2025 and beyond will require balancing innovation with stability, managing stakeholder expectations, and navigating the complex landscape of emerging technologies while maintaining legacy systems.
For insurance technology leaders looking to stay ahead of these trends and connect with peers, Datos Insights’ Insurance Technology Conference in Boston (April 28-30, 2025) promises to be an essential event. The conference will further explore AI implementation strategies, cybersecurity challenges, and other critical topics shaping the future of insurance technology. Those who missed the insights from ITC Vegas won’t want to miss this opportunity to join the conversation!
