Chapter 1:
An Introduction to Artificial Intelligence
There has been a spotlight on Artificial Intelligence (AI) in everyday conversations.
But what is it?
Artificial Intelligence is the inherent ability of a machine, computer, or software platform to mimic human logic and thought patterns to take actions and initiate workflows based on pre-programmed stimuli. In the words of IBM, Artificial Intelligence “leverages computers, data and sometimes machines to mimic the problem-solving and decision-making capabilities of the human mind.”[1]
Computer programmers build AI models using algorithms and other intelligent programs using quantities of data so large that humans would be unable to manage the scale. The more evolved, sophisticated AI technologies can even learn and adapt based on the input they receive. As a result, AI technology revolutionizes user experiences by reducing the burden of repetitive, manual, and time-consuming tasks.
AI-driven solutions automate and optimize workflows—without constant human involvement—to drive data-driven decision-making for people and organizations across all sectors. The more powerful the AI, the more independent the technology is from humans.
Before we dive deeper into AI—both its history and its place in today’s insurance world—let’s first explore some general examples of how businesses are currently using AI.
Businesses across all industries enable chatbots that initiate and facilitate standard customer conversations on their websites. Also, agricultural and insurance companies use AI to analyze weather patterns to predict future forecasts. Another example comes from financial organizations that use AI to glean customer insights to determine investor risk tolerance. Then, there are AI-powered tools that allow marketing teams to target digital ads to specific web-based audiences and measure digital content performance across different platforms.