Survey: Most IT Decisionmakers at Insurers Plan to Invest $500K to $5M in AI This year

Most insurance IT decision-makers (69%) plan to invest from $500,000 to $5 million in AI this year.

That’s according to a new study, which shows many of those decision-makers have nearly doubled the AI spend in their budgets over the past year – the average projected investment this year per respondent was $2.5 million.

The 2024 Global AI Report from Rackspace shows companies believe the benefits of AI are in areas of innovation (49%), sales (48%) and risk management (47%). Organizations are also struggling with two key areas: security and talent gap. Respondents believe that the talent gap is leading to missed opportunities in those areas, the survey shows.

When using AI, 47% of insurers have credited it with substantial benefits including:

• 45% reported AI has increased in innovation and reduced risk
• 41% reported increased in sales
• 41% reported increased understanding of business and customers
• 39% credited AI with personalizing marketing campaigns