A common concern surrounding automation in recent years is that it will result in widescale job losses as the work previously done by people is taken over by technology. Of course, the reality doesn't really support this narrative, and indeed, companies that invest in technology often end up employing more people as a result of the improvement in their fortunes heralded by the investment. The leadership team of the fintech company Kashat highlight the reality of investing in technology. They reveal that microfinance has traditionally been highly labor intensive, with many of the skills the same as those used in the sector for years. With the introduction of AI, new skills have been introduced into the underwriting process in order to serve at scale, while enabling employees to further expand their skillset and become even more valuable in the future.
AI and advanced analytics can have a transformational impact on every aspect of a business, from the contact centre or supply chain to the overall business strategy. With the new challenges caused by coronavirus, companies are in a growing need of more advice, more data and visibility to minimise the business impact of the virus. However, long before the disruption caused by Covid-19, data was recognised as an essential asset in delivering improved customer service. And yet, businesses of all sizes have continued to struggle with gaining more tangible value from their vast hoards of data to improve the employee and customer experience. Data silos, creaking legacy systems and fast-paced, agile competitors have made the need to harness an organisations data to drive value of paramount importance.
Unlocking the business value from big data is probably the biggest challenge any company working on an analytics implementation can face. For any insurance industry player intent on designing products fit for the future, and fit for a diverse and ethically-driven organisation, there's a need to consider the ethical component being built into algorithms and scores. The financial regulator the FCA has published its vision for the use of AI and big data in insurance, and some important next steps. It has said the sophistication of AI has great potential for social good, and for solving many of the problems it faces from a supervisory perspective. There's already been some notable successes, for example in supervising large populations of small brokers and other firms, effectively being able to see the "wood from the trees".