Study: For Insurers, AI Value Depends on Trust and Transparency
A new study by SAS and IDC reveals that insurance companies gain significant value from AI when they prioritize trust, governance, and transparency. Companies using AI for growth achieve better results than those solely focused on cost reduction.
Insurance companies are realizing substantial value from their artificial intelligence investments, but achieving this success hinges on trust and transparency, according to a new report by SAS in collaboration with IDC. The study indicates that for AI to deliver maximum benefit, companies must have confidence in its outputs, and the AI systems themselves must be demonstrably trustworthy.
The research highlights that the insurance sector shows the strongest strategic commitment to AI among industries. Companies that leverage AI for growth and operational improvements, rather than primarily for cost savings, report the most significant gains. The report identified cost reduction as the least effective use of AI.
Organizations leading in trustworthy AI practices demonstrate mature governance, superior data quality, and robust auditability. These leaders anticipate strong or high returns on their AI investments, a stark contrast to those lagging behind, who reported no significant ROI. Effective communication of responsible AI policies across the entire organization is also a characteristic of these leading firms.
While trust in AI is growing within the insurance industry, users still express significant concerns regarding accuracy, fairness, and safety. This leads to a notable rate of AI-driven decisions being overridden. Investment in AI is projected to increase, with expectations for positive returns, particularly from customer-facing improvements.