If you treat AI as a must-have technology you are doomed to waste time and money. This is a strategic error for many insurers chasing the fruits of digital transformation of insurance, claims management and customer service.

"AI is hip again. It’s in vogue. The money is flowing. Companies are becoming “AI first” as if the previous stigma never existed. Interest in AI continues to heat up and shows no signs of slowing. And yet, with all the billions invested and thousands of the world’s best thinkers on the case, we still have not cracked the nut of artificial general intelligence. " Kathleen Walch Contributor Forbes November 1st 2018

Kathleen goes on to say- "They don’t ask whether something they implemented is or isn’t AI. Instead they ask what transformative effect that technology has. They ask what benefit they can realize from machines that can think and act as humans do. They ask how AI will represent opportunities to dramatically increase efficiency, reduce expenses, increase customer satisfaction, improve existing products and services, and create new business opportunities. Because at the end of the day, an organization itself is not about its technology, but its overall mission and objective. And just like those organizations, AI is not defined by technology, but by the overall objective."

The worst thing an insurer should do id decide to adopt AI because 67% of other insurers espouse that strategy. Or Lemonade claims that AI is a significant element of its competitive advantage. 

There has to be a clear vision and strategy of what the overall mission and objective is and how AI will or will not help achieve these goals.

And what resources, talents and cultural changes will be required to ensure success? If AI is to automate repetitive and predictable analytics ad decision making what decisions do you expect employees to make? By implication they will be higher level and and more complex- the ones AI cannot tackle so you had better train people and give them the decision tools to achieve success.

AI is probably best seen as stage 2 of digital transformation and most insurers are struggling to complete Stage 1- See Get Ready for the Insurtech Revolution, Act 2- hang on we've not achieved Act 1 yet!

And remember that it will take more time and money than you expect.

Nevertheless you should be planning the vision, goals, strategies and where AI fits knowing that some of the developments that are deployable on hat journey will be vital to future success.