Page 39 - Insurance Times March 2024

How AI (Artificial

Intelligence) and

Information Technology is

disrupting traditional role of

Financial Advisors and Neeraj Kaushik

Agents in the US Life Principal Consultant at Infosys
McCamish Systems, US.
Insurance Industry ALMI, FIII, Fellow-RMAI

"The landscape of the US life insurance industry is undergoing a rapid transformation due to the
advent of artificial intelligence (AI) and technology. Traditional financial advisors and agents are
finding their roles disrupted as these innovations reshape the way insurance is bought, sold, and
managed."

Introduction: Some contend that artificial intelligence (AI) has the ability
to displace human financial advisors, rendering their knowl-
The landscape of the US life insurance industry is undergo-
edge outdated. In recent years, robo-advisors and AI-pow-
ing a rapid transformation due to the advent of artificial
intelligence (AI) and technology. Traditional financial advi- ered algorithms have grown in popularity because they pro-
sors and agents are finding their roles disrupted as these vide automated investment advice and portfolio manage-
innovations reshape the way insurance is bought, sold, and ment at a cheaper cost.
managed.
This give us a compelling reason to explore various ways in
Findings from a recent survey of investors are interesting: which AI and technology are disrupting the role of financial
(source: https://www.cnbc.com/2023/08/24/31percent-of-in- advisors and agents in the US life insurance sector:
vestors-are-ok-with-using-ai-as-their-financial-advisor.html):
31% of investors are fine with using artificial intelligence as 1. Automated Customer Insights and Personalization:
their advisor vs. using a human advisor. AI-powered tools are enabling insurance companies to
gather and analyze vast amounts of customer data to
As artificial intelligence (AI) has been a hot topic in the head-
lines recently. You may be familiar with ChatGPT, a sophis-
ticated language model created by OpenAI. It is intended
to provide conversational text responses that sound like
human responses. ChatGPT can comprehend and produce
text in response to prompts or questions since it has been
trained on a great amount of diverse data from the internet.
This has forced the financial sector to consider how AI would
affect financial advisors' jobs.

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