LLMs are an ‘efficiency driver’ for insurance industry – so what does it mean for jobs?

Large language model (LLM) chatbots are starting to become an “efficiency driver” for firms within the insurance industry.

That was according to technology entrepreneur Anat Baron, who said LLMs were likely to become the “default interface” on operating systems in the future.

LLMs are a computer algorithm that process natural language input and predict the next word based on what it has seen previously.

An example of this would be ChatGPT, which some firms in the insurance industry have started to use.

For example, earlier this year (27 March 2023), insurer Zurich said it was experimenting with ChatGPT as it explored how it could use artificial intelligence (AI) technology for tasks such as extracting data for claims and modelling.

”Today, AI can manipulate and generate language using words, images or video,” Baron said during a keynote at the Verisk conference earlier this month (6 September 2023).

”I am not trying to scare you, I am just telling you the reality of it.”

Jobs

Baron made the comments after asking several chatbots what the risks and opportunities of using AI was for the UK insurance sector.

She said ChatGPT gave her a list of opportunities, like claims processing, risk assessment and fraud detection, while it flagged some risks including data privacy, regulatory challenges and reputational risk.

Meanwhile, Google Bard highlighted risks such as compliance model bias, job displacement as well as data privacy.

Baron stressed that AI would not replace jobs, but told delegates that working out how to use generative AI would increase their chances of remaining in a job.

“The thing about all of these models is that it’s up to each of us to find out the information they are getting is actually true,” she said.

“AI is not going to replace you, but a person that knows how to use AI will definitely replace you.”