Generative AI
AI that creates new content such as text, images, or code. In insurance it aids drafting, summarization, and service, but raises accuracy and privacy concerns.
Generative AI is a type of artificial intelligence that creates new content, such as text, images, audio, or code, rather than simply classifying or predicting. In insurance, common use cases include drafting claim notes, summarizing documents, generating customer-service responses, and producing marketing content.
Generative AI raises distinct governance risks. The outputs can be plausible but wrong, which is dangerous in a regulated industry where accuracy matters. The tools can also process sensitive data in ways that are not visible to IT or compliance, making them a common source of shadow AI.
Carriers should classify generative AI use cases by risk, apply data minimization, prohibit high-risk uses without approval, and monitor outputs for accuracy and compliance. See our guides to agentic AI in claims, shadow AI, and AI vendor risk assessment.