CEOs see 3-5 years for AI investment returns

Yet, also over half (57%) of organisations see AI as a vital tech.

Over half (58%) of chief executive officers in the insurance industry said it would take them three to five years for generative artificial intelligence (AI) to provide a return on investment, according to KPMG.

Yet, also over half (57%) of organisations see AI as a vital technology for reaching their goals in the next three years, KPMG’s Advancing AI across insurance report showed.

Over the past two years, interest in technologies like large language models and generative AI-enabled natural language processing (NLP) has surged due to their broad applications and benefits. 

These technologies allow organisations to enhance customer service by using voice recognition for identity verification, chatbots for timely responses to queries, and sentiment analysis to suggest personalised next steps for customer service agents. 

Over a third (34%) of leadership supports and has funded AI and automation adoption, yet implementation has been stagnant. Also, 23% have stated a strategic vision exists but executive buy-in and/or investment approval is limiting progress.

Although, nearly a third (30%) said they are proactive and have been continually evolving their strategies.

However, the effectiveness of these technologies depends on the quality of training data, which must be accurate and flow seamlessly across processes and systems, said KPMG. Many insurance firms have begun incorporating AI into specific areas like actuarial or pricing models, and their experience with data quality can support broader AI adoption.