74% of insurers have increased AI investment in the past year, with programs moving from early pilots into enterprise operations across underwriting, claims, and service. Most carriers are budgeting against what vendors charge, but those charges represent only 10% to 20% of what AI programs cost once they are running at scale. The engineering work, compliance reviews, human oversight, and exception handling that sit underneath account for the rest. Understanding these hidden costs is critical to build a credible business case, defend investment to leadership, and budget accurately.
Join Advisor Jack Krantz to break down the true economics of enterprise AI:
- The hidden cost structure: Why vendor charges represent only 10–20% of AI program costs, and where the remaining investment goes
- Business metrics that matter: How to measure AI performance using operational KPIs (cost per claim processed, cost per underwriting decision) instead of technical metrics that don’t resonate with business leaders
- Building an AI business case: A framework for calculating total program cost, setting realistic expectations with leadership, and preparing for the questions your CFO will ask
- CFO and board readiness: How CIOs and COOs defend AI investment against financial scrutiny, explain variable, consumption-based pricing, and position programs for sustainable scaling
