Understanding AI and How it Can Benefit Your Business Operations
Author: Chip Seelig, Director of Managed Services
It is very exciting to be alive in a time where we can start to use AI to do automated tasks in business operations! However, AI is still relatively new to the business place to be used in this manner, and as such our experience to guide your business decisions around this are limited.
Here is what I can say: a computer-based AI language model, like OpenAI’s ChatGPT or Google’s Bard, refers to a sophisticated software program that uses artificial intelligence techniques to generate human-like text responses. Let’s break down the meaning:
- Computer-based: This means the AI model runs on a computer or a network of computers. It’s a software application, not a physical entity.
- AI (Artificial Intelligence): AI refers to the simulation of human intelligence in machines that are programmed to think and learn like humans. In the context of language models, AI enables the software to understand and generate human language.
- Language Model: A language model is a statistical model used in natural language processing (NLP) and computational linguistics. It’s designed to predict the probability of a sequence of words occurring, given a certain input. In simpler terms, language models learn patterns from vast amounts of text data, allowing them to generate coherent and contextually appropriate responses to textual input.
When you combine these elements, a computer-based AI language model is a software application that utilizes artificial intelligence techniques to understand and generate human-like text. These models are trained on large datasets to learn the complexities of human language, enabling them to generate responses that, ideally, mimic human conversation.
Benefits
There may be some benefits to using AI for what you’re asking about. In regards to form comparison, language models can analyze different insurance forms and policies quickly and accurately. They can understand complex legal and technical language, making it easier to compare coverage details, terms, and conditions across various insurance options. This can no doubt save you time and help you make informed decisions.
AI can also be used to automate routine tasks, such as responding to common customer queries, managing appointments, and processing paperwork. It can also assist in customer onboarding and claims processing, streamlining operational workflows. This would certainly help increase productivity allowing your agents to spend more time on items of higher importance. The speed in which an automated AI response can respond will likely also give an improved customer experience.
The use of AI for marketing is where things can get tricky as you wouldn’t want the AI to misinterpret risks. But, it would certainly be useful for analyzing the client risk and comparing it to industry trends and other risk profiles to make compelling submissions to carriers. The notion of easily providing data driven insights to a carrier has the potential to be a real game changer.
Now, here is where I kill all the excitement I have building up. While including these AI devices into your business are a compelling concept to make decisions for you and your clients, there are several points of caution which should be weighed heavily into your decision to investigate this further.
Limitations
- Lack of Understanding Context: AI models might misinterpret nuanced queries or fail to grasp the full context of a conversation, leading to inaccurate or inappropriate responses.
- Data Dependency: AI models require substantial amounts of data to perform effectively. Limited or biased datasets can result in skewed or incomplete responses.
- Ethical Concerns: There are ethical implications regarding data privacy, bias in algorithms, and the potential for AI to be used unethically.
- Maintenance and Updates: AI models need continuous monitoring, updating, and maintenance to remain effective and secure. Outdated models might not perform well or could be vulnerable to security threats.
Pitfalls
- Over-Reliance: Over-reliance on AI can lead to deskilling of human employees, reducing their ability to handle situations that fall outside the AI’s capabilities.
- Loss of Personal Touch: Depending solely on AI for customer interactions might lead to a loss of the personal touch that can be crucial in industries like insurance, where trust is a significant factor.
- Miscommunication: AI might generate responses that are technically accurate but lack the empathy or emotional intelligence necessary for sensitive customer interactions.
Points of Caution
- Data Security: Handling sensitive customer data is a significant concern. Businesses must ensure robust security measures to protect customer information from breaches or misuse.
- Regulatory Compliance: Depending on the industry and location, there might be regulations governing the use of AI and customer data. Adhering to these regulations is crucial to avoid legal complications.
- Customer Feedback: Regularly collect and analyze customer feedback to identify issues with AI-generated interactions. Addressing customer concerns promptly is essential to maintain trust.
- Human Oversight: Implement mechanisms for human oversight of AI interactions. Humans should be available to intervene in situations where the AI cannot handle the query or when customers specifically request human assistance.
- Transparency: Be transparent with customers about the use of AI. Inform them when they are interacting with a machine rather than a human, and be clear about the limitations of AI-generated responses.
The decision to utilize AI is strictly a business decision. I would also further encourage you to explore the use of AI in your organization with your business attorney as well as your carriers and line of business vendor. KiteTech is here to help ensure your business and your customer information is kept safe and help protect against breach or misuse. To learn more about how Kite Technology can help your organization, please contact us.
