Technology implementations are complicated. In fact, nearly half of respondents in a recent BCG survey (global C-suite executives)admitted that more than 30 percent of all technology development projects in their organization experience delays or go over budget.
Executive Summary
Insurance leaders are likely to encounter potential missteps and organizational resistance on the road to AI-enabled innovation.
In this three-part article series, two leaders in the insurance technology space, Shravan Kumar Joginipalli and Amrish Singh, discuss key human and technological considerations, providing guidance to help insurance leaders achieve return on their technology investments.
Here, in Part 2, they focus on potential technology project pitfalls, warning that even perceived best practices—like forming oversight committees—can become pitfalls.
In Part 1, they focused on the human element, offering five steps to building an AI-ready culture.
Before insurers launch new AI initiatives, it’s important to look at common best practices and pitfalls that can influence project outcomes. You may be surprised to learn that some perceived best practices can also be pitfalls, so think through every angle before acting.
Potential Pitfall #1: Transparent Communication
When insurance leaders embark on AI transformation within their organization, transparent communication is often seen as a way to bring everyone onboard and foster trust. Stakeholders will want to know about the company’s plans, while employees will want to know how those plans will impact them. By being open and honest, companies can ease concerns and avoid unpleasant surprises.
However, transparent communication can also lead to issues, especially when information is revealed prematurely. For example, if a company announces vague and aspirational plans for AI transformation, customers may become impatient for the promised results, while stakeholders may feel that they are being manipulated and deceived. Employees may also become uneasy if they know that momentous changes are coming but they don’t yet know what those changes will entail or how they will fit into the new regime.
