The insurance sector stands at a critical juncture in artificial intelligence adoption. Media portrayals and vendor hype are getting in the way of effective AI use: They treat all AI as interchangeable, resulting in undifferentiated adoption without fit assessment. These misperceptions lead to unrealistic expectations, poor strategic decisions, and implementation failures.
This report outlines three distinct AI paradigms: Predictive AI, which centers on data analysis for predictions; Generative AI, which specializes in content creation; and Agentic AI, which facilitates autonomous actions. It explains the Datos Insight’s DREAM AI framework, a systematic approach insurance executives can use to navigate the complexity of AI selection and implementation. It is based on Datos Insights’ ongoing research into AI applications in insurance. It draws upon conversations with carriers, solution providers, and industry experts about their experiences with predictive, generative and agentic AI.
Clients of Datos Insights’ Life, Annuities, & Benefits and Property & Casualty services can download this report.
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